Background:
Despite significant improvements in their production processes, our client, a prominent OEM component manufacturer, still encountered unexpected delays. These delays weren’t due to major disruptions or operational inefficiencies but stemmed from a surprisingly common issue: missing small components.
While the major activities were completed on time, production often ground to a halt because of the absence of minor yet crucial parts. These parts were typically assumed to be readily available, leading to last-minute scrambles when they couldn’t be found.
Key Challenge: The Missing Parts Problem
In many manufacturing environments, there’s an assumption that all parts, especially smaller components, are always on hand. This assumption leads to a lack of rigorous checking and can result in significant delays when these parts turn out to be unavailable.
Our client was experiencing this firsthand. Their projects were frequently put on hold because the required small components were missing at critical points in the production process. This oversight was costing them valuable time and money.
Seeking a Data-Driven Solution:
Solution: Introducing the BOM-Driven Work Order Process
To address this issue, Proval Consulting introduced a structured approach centered around the Bill of Materials (BOM). Our solution involved several key steps:
- Work Order Process with BOM Validation:
- Before starting any project, a detailed work order was required.
- This work order had to include a comprehensive BOM listing all components needed for the project.
- The production team had to obtain a “cleared to build” approval from the procurement team. This approval was only granted after confirming that all listed components were in stock.
- Daily Counting Cycle:
- To maintain clarity and readiness, we instituted a daily cycle count.
- Each day, the team reviewed the BOM to ensure all components were available and accounted for.
- This practice not only prepared the team for the next day’s work but also embedded a culture of proactive inventory management.
- Proactive Inventory Management:
- By regularly validating the BOM and stock levels, the team could anticipate potential shortages and address them before they caused delays.
- This approach minimized the risk of unexpected part shortages and ensured that production could proceed without interruptions.
Implementation:
Proval Consulting worked closely with the client’s production and procurement teams to integrate these new processes into their daily operations. Training sessions were conducted to familiarize the teams with the BOM validation process and the importance of daily inventory checks.
We also established regular review meetings to monitor the implementation’s effectiveness and make necessary adjustments.
Results:
- Eliminated Delays: The systematic validation of the BOM before project initiation virtually eliminated delays caused by missing components.
- Improved Workflow: The production process became more predictable and streamlined, with fewer interruptions.
- Enhanced Team Collaboration: The daily counting cycle fostered a culture of clarity and teamwork, as everyone understood their role in maintaining inventory accuracy.
Conclusion:
The Missing Parts Problem is a common issue that can significantly disrupt manufacturing operations. By implementing a rigorous BOM-driven work order process and fostering a culture of proactive inventory management, Proval Consulting helped our client transform their production process.
This case study underscores the importance of addressing even the smallest details in manufacturing. Ensuring that all components, no matter how minor, are available and accounted for can prevent delays and improve overall operational efficiency.
Are you facing similar challenges in your production processes? Let Proval Consulting help you identify and eliminate bottlenecks to keep your projects on track.
Contact us today to learn more about how we can help optimize your operations.
Project Details
- Category: Material Management
- Client: A leading OEM component manufacturer.
- Location: U.S.A
- Challenge: Persistent project delays due to the unavailability of small but essential components.
- Objective: To streamline the production process by ensuring all parts are accounted for before project initiation, preventing delays caused by missing components.