Inventory optimization

Case 4: Capital And Labour Productivity Improvement In Supply Chain

Client Situation

Client had a need to react faster to market changes, to improve delivery reliability and simultaneously decrease inventory levels. Client understood that these can be achieved by decreasing production batch sizes. In order to reduce batch sizes, working methods in production change-overs had to be developed so that change-overs can be managed faster and more economically.

Project objective was to halve the time used in change-overs as well as halve the production losses.

PlaNet's role in the project

PlaNet helped client to

• define in detail the time division between different tasks in change-overs in order to find the development areas and current problems in the process
• generate ideas for a new working methods for change-overs
• define a development plan to implement the changes
• track realized results and react correctly to deviations

Solution and client benefits

Client renewed working methods and working instructions for change-overs which enabled:

• giving up the extra shifts for the weekends -> significant cost savings
• flexibility and better service level through smaller economical batch sizes

Client's personel learned a new way to develop operations. The cornerstone was involvement and participation which lead to successful implementation.

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