Redesigned Production Processes Reducing Total Cycle Time by 50% for PE-Owned Packaging Manufacturer

Challenge

A private equity-owned manufacturer of small- to large-scale packaging equipment had an inefficient and inaccurate production planning environment.

The company required remediation actions to reduce order backlog and secure the correct raw materials and components to reduce total-cycle-time and deliver on time.

Approach

  • Identified core issues with BOMs across core product groups
  • Uncovered existing master data issues and identified and prioritized processes and system remediation
  • Identified improvement opportunities and created routings for flat BOMs
  • Developed appropriate min/max level with realistic lead times to ensure raw material availability
  • Redesigned production lines to create ideal flow and takt time at each work cell location

Results

I.

Reduced total cycle time by 50%

II.

Identified opportunity to increase gross margin by 60%

III.

Improved product assembly sequence by 40%

IV.

Doubled total capacity

Experts