3x reduction of work in process for marine manufacturer

Client Overview

The client was a low volume producer of high value consumer products. Cycle time was on the order of four weeks per unit. They had very poor inventory control and suffered from part shortages, excess inventory and high scrap rates. Despite the long manufacturing cycle time, all material was procured for the start of each unit.

Our Involvement

We were brought in to help improve profitability. We implemented an inventory control system with discrete locations for inventory. We reduced the kit size from 1 week of work to 1 day of work. We developed a software program to track work orders and kitting requirements. We established task specific standards and developed an automated schedule. We implemented controls for issue of additional material and for root cause analysis of scrap.

The Result

In addition to providing the client with visibility of their inventory, we provided them with tools for activity based planning. We reduced the amount of WIP by a factor of three and dramatically reduced both the scrap rate as well as the incidence of part shortages.

Other Case Studies

20% direct labor reduction for processing facility

The client was a processing facility in a heavily regulated

20% inventory reduction for automotive parts manufacturer

The client was a high volume aftermarket automotive

Operational analysis revises sales forecast by 20%

The client had been a low volume, high tech

50% scrap reduction for automotive parts manufacturer

The client was a high volume producer of automotive

30% reduction in overhead for government contractor

The client was a high tech, low volume manufacturer in a heavily

Read our Case Studies

We have managed process improvement projects in industries

View All