Too Much Inventory
With an excess of work in process inventory in front of the final test operation, the team mapped the process and identify the optimal level of inventory. The 80% reduction in inventory was beyond what the leadership expected from this project.
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The Complete Deployment
The deployment of Operational Excellence combines the Strategy System, the Management System, the Performance System, and Tactical Leadership. When implemented completely, the results for one client yielded greater than 90% EBITDA increases two years running.
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Paint it Right
The paint system had run inefficiently for 27 years. A $17 million investment was planned to replace it. When the value stream transformation was initiated and the five subprojects were completed, a two shift operation had been reduced to a single shift, while handling a 40% increase in through put. The cost reduction of 60% was also great surprise to the executive leadership.
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Operational Recovery
The acquired company had knocked off its second plant manager in less than a year. When Operational Excellence was deployed this new manufacturing facility went from last in the division to first in safety performance, and recovered on time delivery from less than 60% to 98%. The performance allowed a $20 million expansion and increased performance and profits for many years.
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Get on Schedule
The new facility had only been in operation for two years. The investment was considerable. The complex equipment was only the third of its kind installed in the world. The problem was the operation had never been on schedule. Operational Excellence stepped in to transform the operation, and within six weeks the plant was running on schedule for the first time in its operations. "We never believed it was possible."
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Sales and Operations
With conflicting objectives between the operations group and the sales team, conflict was eroding margins and profits. By identifying common incentives and defining key decisions, the S&OP process was improved and significant margin opportunities and improved sales were the outcome. The two Vice Presidents were thrilled with the new level of sales and profits.
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New Product Introductions
Applying Operational Excellence in the design space is not out of bounds. By standardizing and connecting the design function with the manufacturing processes the time from design to delivery was reduced and significant cost savings were achieved. 25% to 35% reductions with earlier production start up was achieved.
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Repair Season Opportunities
When repair parts orders began to climb, the gap in capacity was quickly realized. The Operational Excellence Performance System was applied, and soon additional capacity was delivered. The response from the president of the company, "We have never made this much money in a single repair part season in our history."
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A Culture of High Performance
An executive wanted to continue building a culture and a add a focus on process. She elected to provide the Management Systems and Tactical Leadership training with additional coaching for her team. The change was noticeable and the team responded with improved execution in the project space, improved relationships with a wider team of leadership, and a contribution to the EDITDA goals for the corporation.
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