Equipment Manufacturer
SITUATION
A major energy equipment manufacturer seeking external expertise to identify ways to optimize performance while maintaining its ability to meet customer orders.
DRIVER GOAL
To improve productivity by 20%, decrease inventory by 20% and increase order fill rate to 90% by the end of the current year.
RESULT
- Decreased inventories by 20%.
- Achieved an 82% fill rate.
- Improved productivity by 18%.
- Decreased customer complaints substantially.
Case Study
Optimize Operational Performance
Issue
A major energy equipment manufacturer facing growing inventory and rising costs sought external expertise to identify ways to optimize performance while maintaining its ability to meet customer orders.
Highland Approach
The Highland Group conducted a thorough analysis of the operation to identify performance gaps and constraints. Then, the team partnered with client leadership to develop an implementation roadmap, which included the specific actions required to achieve the stated Driver Goal.
Actions Taken
- Developed and implemented a new inventory control system and barrier removal process.
- Created and installed a production control and master scheduling system driven by and responsive to customer demand.
- Developed and trained 100 managers and supervisors on a System for Management to drive performance improvement and accountability down to the work group level.
- Designed and implemented a change management program.
- Instituted daily production review meetings that included production management and supervisory personnel.
- Identified and implemented over 400 improvement opportunities.
