Production processes and inventory control impacts bottom lineSurface Transport & Logistics

1

The production facility was greatly hindered by cost overruns and missed schedules. The issues were systemic and to date, unable to be solved. This impacted the organization’s ability to obtain future contracts. 

challenge

The production team consumed an excessive volume of inventory.  Due to poor processes, production time exceeded budgeted time and resources. Excessive material usage and schedule delays increased costs and resulted in missed production deadlines.

solution

  • Analyze workflow capacity.
  • Incorporate lean methodologies and tools to determine the root cause of problems. 
  • Create a streamlined production floorplan layout.
  • Maximize the use of existing equipment and linked material consumption to inventory management. 
  • Developed corrective actions to achieve organizational goals and objectives.

results

Through improved tracking, gained control of excessive inventory usage. Operations budgets were met. Cost savings were passed onto the customer through reduced material usage and improved production costs. 

Generated efficiency gains through decreased cycle time and increased throughput.

Production’s on-time delivery now aligned with the schedule.

$700K in excess inventory cost savings.

“A vision cannot be realized without the ability to execute.”

Khris K. Bhattan
President, RTG Solutions Group
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