Introduction:
In the realm of manufacturing, On-Time Delivery (OTD) is a crucial metric directly linked to customer satisfaction and market share. This case study explores how Proval Consulting tackled the challenges faced by a client grappling with poor OTD, leading to a transformative journey that not only improved delivery performance but also positively impacted the client’s market share.
Client Background:
Our client, a prominent player in the manufacturing industry, faced a critical issue of consistently low On-Time Delivery, resulting in customer dissatisfaction and a shrinking market share. Analysis revealed issues with parts availability, shipping logistics, and extended manufacturing times, creating a domino effect on the overall delivery performance.
Objectives:
- Improve On-Time Delivery (OTD) performance.
- Address issues related to parts availability.
- Streamline shipping processes.
- Reduce manufacturing lead times.
Problem Identification
Proval Consulting conducted a comprehensive analysis of the client’s operations and identified key areas for improvement. The strategic approach included the implementation of various Lean and Six Sigma methodologies:
Solutions Proposed:
5S Implementation:
- Applied the principles of Sort, Set in order, Shine, Standardize, and Sustain to organize the workspace and enhance efficiency.
Kanban System:
- Introduced a Kanban system to optimize parts availability and inventory management.
- Ensured a seamless flow of materials, reducing delays in production.
Cycle Time Reduction:
- Initiated a focused effort to reduce manufacturing cycle times for products through process optimization.
- Streamlined the production process for quicker turnaround.
Value Stream Mapping:
- Mapped the entire value stream to identify and eliminate bottlenecks.
- Streamlined processes to enhance overall efficiency.
Prioritization of Orders:
- Implemented a strategic order prioritization system to ensure critical orders were processed with priority.
- Aligned production schedules with customer demand.
Implementation:
Proval worked collaboratively with the client’s team to implement the proposed changes. Training sessions were conducted to ensure a smooth transition, and continuous monitoring and adjustments were made as needed.
Results:
The impact of Proval’s interventions was substantial:
Significant Improvement in On-Time Delivery (OTD):
- OTD performance increased from a challenging 51% to an impressive 90% within just three months.
- Enhanced customer satisfaction and loyalty.
Market Share Growth:
- The improved OTD directly influenced the client’s market share, leading to increased customer confidence and preference.
Efficiency Gains:
- Parts availability, shipping logistics, and manufacturing lead times were significantly optimized, resulting in a more streamlined and agile production process.
Conclusion:
Proval Consulting’s strategic deployment of 5S, Kanban, cycle time reduction, value stream mapping, and order prioritization not only elevated the client’s OTD performance but also directly impacted their market share. This case study showcases the transformative power of Proval’s expertise in addressing complex operational challenges and driving tangible results that extend beyond the production floor.
Ready to enhance your OTD performance and boost market share? Connect with Proval Consulting for tailored solutions that drive efficiency and elevate customer satisfaction.
Project Details
- Category: Service Consulting
- Client: OEM manufacturer
- Location: U.S.A
- Duration: 1 month
- Results: Focussing on 20% issues caused reduction in 80% of the issues.In the first month of engagement,the client experienced a remarkable surge in revenue by 150%.