Plastics

Service level improvement by inventory reduction

BUSINESS CONTEXT

  • Factory producing parts mainly for the automotive industry.
  • High standards and service levels demanded.
  • Current performance not meeting the standards (OTIF) and Inventory costs too high.

CUSTOMER NEED

  • Improve service level to Customer (OTIF) without increasing inventory (adding costs).

RESULTS

  • Improvement of OTIF by >40%.
  • By reduction of production order lead time by 50-75% (Cycle Time reduction of 10-15%).
  • With an impact on inventory reduction >50% (>100K Euro).

CHANGES

  • Develop and implement standard and predictable production processes based on Lean principles.
  • Planning of production orders based on these standards.

R&G APPROACH

  • Lean Kaizen with operational team.
  • Business Process Improvement based on implementation of Lean principles.

CLIENT TESTIMONIAL

“How stupid could we be to do it every day like we did? – It can be much easier for us and with better results”

Operator