A supplier in the aviation industry had to deal with productivity, quality and cash flow problems.
Management had asked us to perform an improvement analysis and program. With the desired result a healthier cash position and better delivery results.
Activities and results
We first made an inventory of the existing knowledge, methodologies and tools. We reviewed the application of methods of outcomes compared to peers. We then selected additional tools to define problems and additional improvement potential.
Firstly, we conducted a “Material Flow and Information Analysis”. This showed that due to push planning the waiting times, lead times and working capital were too high. Furthermore, due to insufficient forecasting, the production was unable to negotiate and order the materials in time. Consequently production started often not having all materials available, as a result productivity was too low.
Moreover, quality management was underdeveloped. People were not given the opportunity to control and guarantee quality-of-work for themselves, by which a wrong culture existed (inspection by inspectors, no personal responsibility).
Based on the above analyses and outcomes, we defined and launched various improvement projects that have largely solved the bottlenecks.