Environment
  • –Dominant share of market with facilities in 10 countries
  • –Six Sigma project to improve customer service and capacity utilization
  • Reduce creation of Aged Inventory due to forecast error, scheduling issues and poor responsiveness by facility
  • –Large inventory write-offs due to obsolescence and Aged Inventory
Scope
  • –Leverage Six Sigma DMAIC process to study & improve processes causing the service, production and inventory issues
  • –Evaluate new tools & techniques that support demand-pull manufacturing
Approach
  • –Map the process steps leading to the formation of Aged Inventory
  • –Develop hypotheses relative to cause & effect relationships on Service, Production and Aged Inventory
  • Evaluate via Sensitivity Analyses, FMEA and prioritize the most influential factors
  • –Implement Demand-Driven, Probabilistic Predictive Modeling and Simulation “What-if” tools to improve and control the process factors going forward
Results
  • –45% reduction in working inventory and AI
  • –10% increase in service levels
  • –5% improvement in production throughput without capital expenditure
  • –$3-4MM improvement in contribution margin
  • –ROI achieved and sustained within 3 months of Live Operation
 

 

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