Operations Improvement Case Studies

Volvo Trucks North America

Planned and designed on-site warehousing at Volvo’s US truck manufacturing operations to improve the level of service to assembly and painting operations and also satisfy Volvo’s required internal rate of return. The project’s scope included the development of an expensive parts database, alternative concept development and comparison, development of facility and equipment general arrangements, recommendations for suitable material handling equipment, estimation of equipment costs, and a thorough economic analysis supported through the development of a financial model. The model was used to help determine operationally and financially justifiable concepts and to provide a basis for recommendations for on-site warehousing functions, which satisfied Volvo’s guidelines for financial returns.

Chemdal Corporation

Developed a capital/operational financial investment justification for a multimillion dollar chemical manufacturing plant, including scenario, sensitivity and risk analyses. The objective was to assess the feasibility and return on investment for a manufacturing capacity expansion in conjunction with detailed engineering design. This study enabled the company to expand both the scale and scope of its manufacturing capabilities in support of the rollout of new chemical product lines.

Florida’s Natural Growers

Developed an optimized master plan for the company’s Bartow site. The objective was to determine how to maximize the not-from-concentrate juice processing capabilities of the property, which included a farm of one-million-gallon tanks, fruit staging and unloading areas, juice extraction operations, a packaging facility, finished goods warehousing, by-product processing, and shipping. Factory Flow software was used to compare the material movement costs of several alternative site layouts. Despite the challenge of limited rail access, current process bottlenecks, immovable buildings, grower required fruit storage, and wastewater recycling and treatment, the approved plan tripled the site’s previous juice processing capabilities.

Pepsi Gemex (Mexico)

Conducted an enterprise wide study of client’s business processes, operations and organization, resulting in a recommended realignment program to meet client’s strategic objectives. Conducted analysis of and recommended changes to business processes and organization in a vertically integrated, 32-plant anchor bottling business. Recommendations included streamlined processes, execution of processes at the correct level within the organization, streamlined functionally oriented corporate and regional organizations, and the introduction of focused work teams and cell support structures in the plant level organizations.

Tractor Supply Company

Numerous projects successfully completed for this growing retailer. Responsible for distribution network planning, transportation planning, two DC site selections, and design and installation oversight of two new distribution centers’ operations. State-of-the-art logistics modeling software was used for distribution planning. Design work included conveyors, fork trucks, and other material handling equipment, dock equipment, storage rack systems, battery charging equipment, warehouse management systems, and voice-directed order picking systems. The retailer has very profitably grown from about 350 stores in 18 states when initial supply chain network design project was performed to more than 750 stores in 40 states.

United States Air Force / Hill AFB

The scope of work included the development of a Lean Transformation master plan and an integrated Lean Transformation schedule, accomplished through the application of a unique Lean Outcomes Architecting approach. Key components of this approach included the alignment of the Lean Transformation program to an overarching strategic plan and the implementation of a highly effective human change management system. The program also included Lean Transformation through the application of system-wide Lean manufacturing tools for the MRO Center’s three weapons systems lines and supporting functions. The weapons systems lines were modified to focus on production processes for similar part families to leverage skill sets and available processing equipment. The plating operation was evaluated and augmented with HVOF operations to reduce chromium exposure issues and improve first pass quality yield for metal deposition processes. This project resulted in a 20%+ reduction in operating costs, 46% reduction in cycle time, 34% increase in chargeable hours (with 17% staff reduction via attrition), 10% footprint reduction and 60% reduction in inventory carrying costs.

United States Treasury Department / United States Mint

Provided strategic planning/change management guidance for a major Lean Transformation of the United States Mint. Developed a capital/operational financial investment justification for a multimillion dollar manufacturing and material handling realignment. Engagement resulted in significant cost reductions, reduced cycle times and increased speed to market for new products. Served as technical lead for four individual projects for as many locations during the modernization process and programs for the Coin Manufacturing facilities of the U.S. Mint. Supported the initial series of Lean Seminars for senior management and staff at each facility. Finalized and implemented the designs of state of the art process material handling and storage systems that were developed by the Mint staff during the Lean Seminars. Developed and issued equipment, system specifications, and bid packages and managed the full bidding and equipment vendor selection process. The client recently reported that they have continued to build on the success of this engagement, with buy-in throughout the organization.

Hexcel Schwebel

Identified opportunities for consolidation, cost reduction, enhanced asset utilization and increased competitiveness for two business units with two textile manufacturing and several warehousing locations. Created an operational and financial analysis model to compare three strategic alternatives with current operations. Provided the client with a comprehensive financial tool to perform further studies, including sensitivity analysis. Redesigned the client’s financial performance metrics to include an Economic Value Added approach. Because of this work, the client was able to significantly reduce inventory, improve manufacturing efficiency, put in place key performance indicators to drive profits, and enhance return on capital.

Maytag Corporation

Operations analysis for a one hundred year old appliance manufacturing facility. Developed and implemented modernization transition plan. Designed and implemented new product prototype integration facility. Presented and supported the Lean Manufacturing “Pathway to the future” seminar to senior staff members.

Precision Industries

Precision machining and mechanical manufacturing operations. Performed general operational analysis of client operations, manufacturing methods, process and production efficiencies, material handling approach and methodology review, and employee skill association with station-by-station assignments. Resulted in an overall re-layout of facility and process flow and improvement in efficiencies in excess of 30%. Reviewed proposed site facility expansion and modernization strategic plan.

DuPont Merck Pharmaceutical Company

One of the world’s largest pharmaceutical manufacturers, DuPont Merck wanted an automated shipping selection system at their Duluth distribution center, which serves 3,000 customers. Due to the products’ short shelf lives, special shipping requirements, and some customers’ medically urgent need for quick delivery, the legacy transportation planning process did not adequately insure proper service levels. The new system developed selected the best mode of transportation based more often on minimizing delivery time than on least cost. Besides greatly improving the scheduling process and customer satisfaction levels, the system was also able to save DuPont Merck about 15% on shipping costs. Also engaged for three years in the United States and Puerto Rico in various organizational alignment and development assignments. Reduced communication bottlenecks, eliminated organizational silos, enhanced speed of production processes, resulting in a reduction in the time to bring “substance P” to market.

Visible Genetics Inc. (acquired by Bayer)

Benchmarked the use of competitive genetic testing equipment at various laboratories performing HIV and cancer-related analysis for patients and research. The purpose was to determine the relative advantages and disadvantages of competitive equipment in terms of sample test turnaround time, labor requirements, ease of use, process methodology, flexibility and the quality of the results. Helped this genetics testing equipment company set up, refine and document their processes and protocols for cancer and HIV genetic testing in their labs. Also, helped plan a new assembly operation which made genetic testing kits to be sold to work with their genetic testing equipment. This engagement enabled the company to grow competitively and ultimately position itself for a successful acquisition by Bayer.