Redesigned ERP Readiness Process to Rationalize 90% of BOMs for PE-Owned Manufacturer

Challenge

A private equity-owned trailer manufacturer faced quality, productivity, and accuracy issues during an enterprise resource planning (ERP) implementation due to overly complex operational processes and inaccurate data.

The company needed help developing optimized processes around BOM accuracy, SKU rationalization, and inventory control to ensure success during the ERP implementation.

Approach

  • Conduced site visits across plant network to gain insight into operations
  • Performed operational excellence assessment, evaluating current state business processes, labor force, quality control, and materials management
  • Identified ERP implementation impacts on current processes and prioritized change management required for implementation
  • Developed an approach for BOM redesign, development, and execution
  • Established project management for operational initiatives

Results

I.

Rationalized Bill of Materials from over 90,000 to ~500 and improved accuracy of BOMs to ensure correct and timely raw material acquisition

II.

Lowered manufacturing costs due to reduced product complexity

III.

Reduced WIP trailer inventory Raw Material requirements

Experts