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
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