Case Study

Major Accomplishment

Challenge

When Off-Shoring Kills Production Efficiencies and Customer Satisfaction

Through COVID a consumer goods manufacturing organization had an increase in demand by 25%. The organization was not able to deliver this increase in demand due to operational inefficiencies, supply chain shortages and scheduling / forecasting issues between sales, the field installers / distributors and production at the manufacturing sites.

“If you don’t have materials, it does not matter how low the cost is, you did not deliver to your customer!”

Strategy

3-Year Plan

  • Develop a 3-year strategic plan to increase forecasting accuracy, optimize operational processes, centralized supply chain activities and reallocate product back from China to North America.
  • Rollout an upgrade to the ERP system to ensure the technology could support the growing demand.
  • Work with the sales, independent & company owned distribution and field installers and manufacturing departments to increase the forecast accuracy thorough technology, communication, and scheduling.
  • Develop and implement a Lean Six Sigma Methodology across nine manufacturing locations in NA to reduce quality and scrap issues while increasing productivity.
  • Develop an End-to-End Supply Chain model that reallocated 50% of foreign produced critical components from China back to NA.

Approach

Six Factors That Enable Process Excellence

 



Results

Roadmap to Success

In the 2.5 years since the rollout of the 3-year strategy the organization has upgraded the ERP system at 75% of the manufacturing sites, productivity has increased by 35% across all major production lines, have reduced part shortages by 52% and seen a revenue growth of 12%. 

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