Reducing Lead Time & Re-engineering Procurement & Supply Systems
Manufacturer of industrial and commercial printing equipment |
| Order Lead Time Reduction via Procurement & Supply Systems |
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| Issue |
Resolution |
| 16 week customer order lead time. |
- Led transition from ‘push’ manufacturing operation to cellular ‘pull’ system, establishing:
- Partnership supply agreements
- Demand forecasting & KANBAN deliveries to point of use locations (releasing 12,000sq ft of warehouse space for production activity)
- Design & implementation of ‘back-flushing’ transactional system
- Factored ‘c’ class item purchasing
- Proactive Vendor Management
- This reduced customer order lead time to ten days, reduced transaction time by 75% reduced cost by £22K pa, and reduced operational costs by £40K pa. Stock availability improved to average of 95% and stock turns to over 27.
|
| Poor on time delivery in separate division. |
- Re-engineered procurement & Supply Chain operation, selection and implementation of MRP system, supplier base rationalised from 150 to 60, and reorganisation of storage.
- Resulted in on-time delivery improved to 95% on-time and 98% within 2 days of due date.
|
| Cost Reduction |
|
| Issue |
Resolution |
| Low margins and long lead times on sheet metal products. |
- Managed Value Engineering project to simplify over-engineered options, identify cost effective fastenings & assemblies and reduce number of unique panels, resulting in 12% materials cost savings, substantial reductions in assembly time and reduced product lead time
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