Operational excellence at a key site for a marine engineering products division of a global organisation

An engineering, fabrication & assembly facility supplying deck machinery equipment to the marine industry, was severely underinvested in, with old facilities & equipment and remote from Group HQ
Seen as a failing site with internal customers losing trust in its ability to deliver
Disconnected planning and production functions causing late delivery and high costs
No effective performance management system in place to drive improvements
Very high inventories due to a lack of control of demand and production priorities
Intention to transfer products in from Scandinavia and establish a low-cost supply centre of excellence

Evaluation of the primary issues and development of a site transformation plan
Focused on OTIF as the critical performance metric; established cross-functional planning with short interval control to manage demand and delivery to promise
Improved data integrity, reset planning parameters and re-established ERP system use
Re-organised operations to improve flow through the factory and to establish schedule adherence
Implemented practical lean operational disciplines centred around PDCA
Addressed excess inventory, control of stock, kitting and warehousing operations
Established effective performance management across all functions
Coached management to develop capability and establish sustainable improvement

Delivery performance improvement OTIF from 14% to 95% within six months
45% reduction of inventories within one year
Jump in recovered factory revenues from effective demand management & increased delivery to commitments
Engaged and productive workforce with a clear understanding of what was required of them
Successful capital upgrade completed while continuing to supply
Site was established as a Centre of Excellence for deck machinery and achieved Group award for excellence
Asked to repeat a similar exercise at another site in the Far East