This story is for CEOs who:
- Need a clear analysis of the best options for expanding, building, or adding on facilities
- Want to increase throughput when legacy systems are in the way
- Need greater visibility into their plan-makebuy-move supply chain
The Challenge
A leading manufacturer of cables and cable systems faced a mandate to double in size within 5 years, increasing revenue from nearly $200M to more than $400M with half the growth coming organically. The company’s executive leadership wanted to understand what locations should be considered for growth in warehousing and manufacturing facilities, to improve costing and customer service.
Using network modeling to identify opportunities for expansion and using DSC to improve throughput
SGS Maine Pointe:
- Instituted hot handoffs between shifts to keep machines running at speed with minimal downtime
- Set up a Daily Schedule Control (DSC) process that increased running speeds
- Closed disconnect between HR, operations, leadership, and manufacturing floor with DSC, and Plant Improvement Plan
- Provide executive leaders with more visibility into manufacturing and ability to meet goals
Lessons learned for other executives
- Feet on the ground analysis is necessary to truly understand bottlenecks and root causes
- Capacity expansion decisions based on network analytics are more likely to achieve goals
- Clear accountability and uniform standards increase productivity
The Results
- Increased production throughput 14%
- Gained $3M to $5M in incremental profit
- Delivered 5:1 ROI in year one
- Modelled network for data-based decision making on expansion options
- Implemented more than 20 safety, onboarding, training, and productivity improvements
- Provide standard manufacturing procedures and increased visibility
- Undertook second phase of project, budgeting and overseeing physical move
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Expediting goal to double revenue with focus on throughput (CS267)
