| Integrity Consulting Success Stories
Manufacturing Plant Losing > $1 Million per Month
Customer’s Problem Summary of Why the Plant Was Losing so Much Money:
- Plant Management, Marketing and Sales were all pointing fingers at each other for the plant’s issues.
- Machine breakdowns were frequent and low run speeds were common.
- During job setup, manufacturing would discover required cylinders were missing or worn. Raw materials shortages were not detected prior to job setup.
- Customer proofing was taking more hours than scheduled or planned.
Root Causes:
- Sales was driving the production schedule, planners were reacting by changing schedules on the fly.
- Job set up was averaging 3.5 hours and job runs were averaging 30 minutes.
- Often, the same job would run every week.
- Preventative maintenance was not being performed.
- Marketing frequently interrupted the schedule for new product testing.
- Customers were allowed to use proofing time for “what if” testing.
Implemented Changes:
- Analyzed the orders and shipment data and produced many products to a 3 month forecast.
- Implemented new processes & rules regarding new product testing & customer proofing.
- Reduced daily production meeting from hours/day to 15 minutes/day. Re-focused on essentials.
- Implemented a frozen schedule for manufacturing. Built preventative maintenance into the schedule.
- Worked with shift supervisors & machine operators to monitor scrap, machine speed & quality.
- Replaced 6 person scheduling staff with 2 experienced production planners.
In 5 Months, the Plant Was Sustaining Break-Even Financials
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Manufacturing Plant Cannot Reconcile Inventory
« Manufacturing Plant Losing > $1 Million per Month
Manufacturing Plant Ties Up Cash Flow In Inventory |
