Computer manufacturer reduces factory cost, while improving customer and employee satisfaction

Factory conversion costs reduced by 40%
50% increase in total factory output

Strategic Intent

Significantly reduce factory conversion costs to grow volume and improve revenues while simultaneously improving on-time customer deliveries and employee satisfaction

Situation

Computer manufacturing division of major telecommunications company
Division recently acquired through merger, and post-merger cultural issues exist
Employee concerns about plant and their future
Competition and commodity pressure is intense
Dozens of internal performance improvement programs attempted but not integrated
Low-cost producers will “win the war”
New general manager serious about “winning;” and future of this unit hinges on turnaround

Issues and Barriers

Factory conversion costs are out of control and delivery performance is totally unacceptable
Extremely high employee dissatisfaction
Invalid production data prevents accurate scheduling and performance reporting
Schedule breaks and misses, late starts and delayed shipments are routine occurrences
Cost to manage comparatively excessive
No clear employee performance goals or feedback

Key Implementations

Develop and translate extensive set of performance goals and standards
Design and implement quantitative capacity modeling and planning system
Design new shop floor planning and scheduling system that matches resources with demand
Redesign both management and indirect structures to improve plant floor support and reduce costs

Results

Key Project Results

Reduces factory cost

Beyond the impressive list of results from this initiative – employee satisfaction improves to the extent that turnover drops dramatically – coupled with absenteeism reduction of 48%. General manager reports total annualized financial benefits directly attributable to engagement are in excess of $8 million.

40% reduction of factory conversion costs
50% increase in total factory output
Days-on-hand inventories reduced 49%
85% improvement in on-time deliveries
Plant-wide productivity increases 67%

Client Perspective

During our project with Brooks, we far exceeded both our productivity and quality goals in only eight months. Brooks has been a reliable, hard working ally in our efforts to improve our competitive position and I would recommend their use to all who face similar change requirements.
— Vice President & General Manager