CUSTOMER CASE STUDY

The client faced challenges such as extended lead times, heightened complexity, and excess inventory due to market changes. Our intervention not only delivered measurable financial and operational improvements but also helped change the mindset of people on the shop floor.

Results

40 % WIP inventory reduction
60 % Lead times reduction
2.5M EUR EBIT increase

Story

The client makes a wide range of customized low & medium voltage cables. Market changes and extreme volatility in metal prices led to increased competition and customer demands, new requirements for increased customization, leading to longer lead times, increased complexity and excess inventory.

The 6-week Phase 1 analysis used VSM and data analysis to model new flows and scenarios using Pull techniques, Kanbans and Supermarkets. Training and shop floor assessments were used to identify Quick Wins on the shop floor and get buy-in from the work force. Five workstreams were successfully implemented: 1. Quick wins; 2. Lean Practices; 3. Pull-based Supply Chain; 4. Customer Service Optimization; 5. Quick Changeovers.

Lead Times were reduced by >47% in 6 months using pull techniques which had huge impacts on inventory, volumes and customer satisfaction

Conclusion

The following results were achieved:

  • Reduced lead times > 60% in 9 mos. (>47% 6 mos.)
  • Increased OTIF (OTD) from < 80% to > 90%
  • Reduced changeover times by 40%
  • Reduced WIP inventory by over 40%
  • Increased EBIT by EUR 2.5M more than doubling profit.

Lead Time reduction had huge impacts on stocks, including obsoletes, volumes and customer satisfaction.

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