INCREASED THROUGHPUT

Doubling Production Through Optimisation of the Supply Chain and Planning Processes

CLIENT

CEO and Executive Board

ACTIVITY

Oil Field Services Company

KEY ISSUES:

The key issue for this organisation was low levels of productivity caused by process inefficiencies. At the time of starting the assignment, the facility was able to assemble 4 units per month despite workstation capacity of more than twice that level.

The key issue for the organisation was the relationship between the supply chain, planning and assembly processes. Parts were often delivered late to the assembly area causing stoppages and changes to the planning sequence. Staff told stories where the majority of workstations had stopped due to missing parts and ensuing planning chaos. This led to late deliveries, longer lead-times and customer complaints. The risk for the company was that customer orders would be cancelled to the advantage of competitors.

 

THE APPROACH:

A detailed analysis of the supply management function and planning process was undertaken. Forecasts were created for critical items and minimum order quantities held on ‘call off’ or in stock. Assembles were planned to be started only when all critical items were available in the production bays.

 

THE OUTCOME:

The original aim of the project was to deliver 8 units per month should market demand permit. The best demonstrated performance was 9 units as market conditions improved.