Case Studies
Situation:
This 50-year-old commercial baking company struggled with production capacity, speed, and scrap. Delivery metrics were poor and contribution margins for products were eroding. The company is a developer and contract manufacturer of high-value frozen bakery snacks and handheld meals for branded food manufacturers selling through foodservice and retail grocery channels. As such during Covid, the demand from Customers escalated.
Solution:
Using TMG’s five-step process, Debra’s Team completed a production process value stream assessment, identifying improvements to addressed production capacity, speed and scrap. Lack of standard processes and training; and equipment and controls malfunction were common. High levels of production inefficiency and scrap resulted. Equipment repair and maintenance were not being effectively planned and managed, which led to breakdowns and more inefficiency.
One of the biggest challenges was automated systems that conveyed, baked, and wrapped the product. Using ProModel Process Simulation, The Mervyn Group modeled equipment operation, training, and capacity improvements necessary to increase output, speed and reduce scrap. Operating parameters were adjusted, work instruction develop for equipment operation and training implemented to address issues and actualize improvements.
Results/ Benefits:
- Improved efficiency of production and maintenance resources and equipment by 30%.
- Decreased production and equipment breakdowns, malfunctions and shutdowns.
- Decreased scrap by 30%.
- Improved management and employee morale and retention.
Situation:
An aerospace and medical device design, engineering and manufacturing firm found it difficult to win and complete projects on time. The lack of standardized engineering processes made the transition from design to manufacturing difficult. The company routinely faced unpredictable outcomes, inflated costs and increased risk.
Solution:
Using TMG Five-Step process, Debra collaborated with teams of mechanical, electrical, software/firmware and manufacturing engineers. Working together, they developed design and engineering standard processes, which met regulatory and industry standard best practices.
To unify the company under a common goal, Debra developed a customized training program for engineers, project managers and team members to introduce the new products into production from prototype to manufacturing.
In addition, Debra customized the organization’s project management processes and procedures for the operations and engineering departments.
Results/ Benefits:
- Reduced risk and costs associated with design and engineering.
- Ability to consistently deliver products on time and budget.
- Improved teamwork and communication.
- Increased market share and improved customer satisfaction.
Situation:
Faced with an increasing number of high mix, low volume product launches, this design, engineering and manufacturing firm struggled to meet Customer needs and regulatory requirements for production and delivery.
Solution:
Working with engineering, supply chain and operations, Debra developed a new product introduction to manufacturing process to enhance success.
The new product introduction process also incorporated improvements to:
- Project planning and management
- Production planning
- Contract manufacturing partnerships
- Production training and management
Once completed, Debra managed the production of several new products while training management and staff on the new process.
Results/ Benefits:
- Met customer and regulatory requirements for production at product launch.
- Improved teamwork throughout the introduction and manufacturing process.
- Improved the organizations ability to meet product launch cost and on-time delivery goals.
Situation:
This manufacturing firm struggled with on-time delivery. Inventory levels were high but production departments couldn’t complete product builds on time. Delivery metrics were poor and contribution margins for products were slipping.
Solution:
Using TMG’s five-step process, Debra completed a supply chain, logistics, manufacturing process and cost assessment.
After creating a virtual model of the current system, she worked with sales, purchasing, production, engineering managers and staff to evaluate the business processes.
Debra soon discovered that many essential parts and materials were not on hand when products needed assembly. Expedited shipping, wasted motion on the production floor, lower quality of substitute materials, delays, overtime and errors were common as production struggled to meet deadlines. Logistic and quality costs were not managed. As a result, contribution margins eroded.
To solve the problem, project management and purchasing processes were modified to forecast upcoming production projects and expedite purchasing and delivery. Management processes were changed in order to hold suppliers accountable for quality as well as delivery.
Results/ Benefits:
- Reduced the cost of quality control by 50% (six figures) the first year.
- Enabled the organization to re-shore products.
- Increased contribution margins while significantly decreasing lead-time.
- Reduce financial and regulatory risks.
Situation:
A newly hired executive team thought production flow was limiting their ability to manufacture and ship product and wanted to implement Lean. They were planning to move equipment to improve flow. Their plan included a building expansion.
Solution:
Debra used TMG’s 5 step process to assess the company’s operations, production flow and conceptual design for the new building layout. Within one day, using process flow mapping and cost accounting, we identified the real issue and challenge was not flow or production equipment layout.
The company’s three antiquated ERP systems were causing the production planner to physically combine three reports from the systems in order to prepare and communicate a production schedule. The company’s buyers had little credible information with which to make wise raw material purchases so were maintaining four times the amount of raw material inventory needed.
Our process flow and costing analysis enabled the organization to justify implementation of a new ERP with a return on investment within 2 months. In addition, the organization was able to significantly reduce inventory levels.
Results/ Benefits:
- Reduced inventory; cut inventory by two-thirds and increased turns.
- Reduced warehouse costs.
- Avoided the need for a building expansion.
- Decreased operating costs.
- Improved Customer service and on time delivery.
Situation:
An electronics manufacturing and assembly company process was restricted to three out of the five available sterilization chambers, due to the equipment validation cost proposed by the supplier. The company did not see the need to validate all the equipment as it appeared the sterilizer was keeping up with demands. However the equipment was scrambling to keep up with production. Additional costs associated with overtime, material handling and product damage from excess handling were being incurred.
Solution:
Using ProModel Process Simulation, Earl demonstrated opportunities for floor layout improvements and using all the equipment capacity to reduce the cost of processing each load. The model demonstrated how the added capacity allowed the sterilizer to accept additional work from new customers. This solution was not obvious. The model predicted that even though the percent utilization for each chamber decreased, the additional scheduling flexibility and the elimination of overtime improved total production capacity while reducing costs.
Once the equipment manufacture understood the capacity constraints and improvements, they agreed to absorb the cost of validation and instead offered a price reduction
Results/ Benefit:
- Increased production capacity by %50.
- Decreased overall costs of sterilization.
Situation:
This company was struggling to keep up with incoming orders and its four-month backlog. Customers were beginning to cancel orders. On time delivery was 50% with 10% Customer return rate from manufacturing defects. Production teams were working maximum overtime, and on Saturdays. There was no additional floor space to add additional equipment or capacity.
Solution:
Working with Manufacturing Engineering and Production Teams, Earl analyzed and developed a continuous flow process using a data tracking system that provided live feedback for station by station quality, quantity and rework actions. Earl trained all managers and team members to High Performing Work Team concepts and the “Game of Work” methods.
In three months, the company backlog was eliminated. Customer return rates fell to less than 1%. Team members were working together and enjoying the wins of breaking production and quality records. Data tracking system were set for setting competitive cost targets.
Results/ Benefits:
- Production capacity increased by 250% while eliminating overtime.
- Elimination of production backlog.
- Significant decreases in returns, to 1%.
Situation:
An executive team of this Fortune 1000 company determined the lack of best practices for design, engineering and construction management contributed to construction delays and increased the risk of operational failures. The absence of design and engineering standard processes made it difficult to complete projects on time and budget. The transition from construction to operations came with significant risk. Costs and outcome were unpredictable.
Solution:
Debra developed processes and controls for the design, engineering and construction management departments using the TMG Five Step process. Working closely with the engineering managers and leads, she developed design and engineering best practices to guide the organization from requirements, through design, engineering and to construction.
She collaborated with teams of mechanical, electrical, civil/ structural and reliability engineers and managers to develop a new set of engineering best practices.
In addition, Debra customized project management office systems, processes and procedures for the design, engineering and construction departments. Debra co-led customized project management training for over 150 engineers, managers and operating facility representatives. This project won an internal award for excellence.
Results/ Benefits:
- Significantly reduced risk.
- Improved ability to meet target deadlines and costs.
- Improved teamwork and communication enhanced the ability to meet design and construction requirements while minimizing costly changes and construction delays.