CUSTOMER CASE STUDY

A steady decline in operational performance was driven by high employee turnover, lack of focus, and overall poor communication across the business function. Visualizing the process helped spark change including a 20% decrease in lead-time and a 90% reduction in obsolete inventories.

Results

20% – Lead time reduction
90% – Obsolete time reduction
8 weeks – Value Stream Mapping exercise to visualize the end-to-end order-to-delivery process

Story

The client produces engineered-to-order industrial valves for global markets into safety-critical fluid processes for several industry sectors. Skills, knowledge and company culture began to erode over several years as experienced employees left and were replaced by new hires. This led to significant disruption in the end-to-end, order-to-delivery lead time, which in turn impacted customer satisfaction, quality, volumes and overall employee motivation.

During an 8-weeks analysis the end-to-end cross-functional supply chain was visualized using Value Stream Mapping workshops, performance data analytics, validated quality gates and KPIs through the whole order execution process. The analysis revealed that high workforce turnover had affected the skills in engineering, quality assurance, technical quotations, sales, and customer service. Process mapping identified lead time reduction opportunities.

The Value Stream Mapping approach, which emphasized a high level of cross-functional employee engagement, facilitated a streamlined process, daily communication, and use of data-driven KPIs facilitated improved operational and financial performance.

Conclusion

Visualization, daily use of KPIs, increased focus on process facilitated cross-cultural communication, and improved quality all drove a change in behaviour and overall performance.

  • Lead time reduced by 20%
  • Obsolete stock reduced by 90%

Daily KPI meetings helped to understand customer orders through the departments.

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