Company:

Original Equipment Manufacturer

Objective:

Make significant reductions in project lead times as measured by the Manufacturing Critical Path Time (MCT).

Situation:

The customer had adopted a Build-to-Demand strategy and significant asset reduction programs that require flexible, price-competitive domestic suppliers.

Solution:

D&S personnel completed a value stream map for a typical existing weldment that involves fabrication, machining, welding and painting. An evaluation of the current state revealed several MCT reduction opportunities. Kaizen events were planned and implemented.

Bottom Line:

Lead time has been reduced from 20 days to 10 days on 101 of the customer’s products and from 20 to 15 days on 36 additional products. Benefits to the customer are many and include a noticeable decrease in inventory and associated carrying costs. In addition, the shortened firm planning window also allows the company to reduce its commitment to a firm delivery schedule. This, in turn, promotes the ability to reschedule production in a shorter planning horizon while facilitating the Build-to-Demand strategy.