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Industry: |
Global Automotive Supplier
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Company Size: |
135,000+ |
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Project Location: |
Germany / Austria / Czech Republic
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Problem Statement: |
Due to significant space constraints at their Austrian plant, our customer was forced to find creative ways to increase their plant production footprint for expected growth. A plant expansion at this location was not feasible and a 3PL solution not wanted by the executive team. If no solution was developed, the plant would be at risk to miss out on lucrative business in the future.
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Meeting: |
High level understanding of operational core processes; plant and warehouse tour
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Deep Dive: |
Reveal and map space consuming processes, prioritization by impact; develop conceptual design of optimized layouts with additional production space
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Hypothesis: |
25% of the Austrian plant is used for finished goods storage and 90% of the finished goods are shipped to sister plants in Germany and the Czech Republic for assembly. Developing and implementing a Just-in-Sequence delivery concept between the Austrian plant and its sister plants in Germany and the Czech Republic will eliminate the finished goods inventory in Austria. The freed up space then can be used for growth in production.
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Project: |
2 consultant 12 weeks |
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Deliverables: |
IS concept developed and implemented
New processes aligned between all 3 plants Feasibility successfully tested during 2 weeks pilot phase Inventory reduction road map including schedule |
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Bottom Line Impact: |
Finished goods physical inventory reduction by ~90%
Production capacity increase by 15-25% |
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Inventory Reduction (Ramp-up)
Fees vs. Bottom Line Impact
