OVERVIEW
Our client was falling short on secure seat shell Airbus A350 deliveries
Prior to contracting the services of FTE, our client fell short on seat shell deliveries for the new Airbus A350 program launches for Finnair, Cathay, Sri Lanka & Vietnam. The importance of this mishap is the dependence corporations, and other aerospace companies have on the reliability of their safety equipment being delivered on time and within reasonable quality.
HOW WE HELPED
We were able to create a more efficient workflow, increasing several areas of production efficiency, introduced proficient methods of inventory shortage management, and reduced the backlog to increase throughput of new design changes into manufacturing. This reduced the time needed for changes, keeping deliveries on-time and re-established our client as a dominant global leader.
- INCREASED PRODUCTION EFFICIENCY
- IMPROVED INVENTORY SHORTAGE MANAGEMENT
- BACKLOG REDUCTION
- REDUCED TIME NEEDED FOR CHANGES
Challenges
There were a total of 9 suppliers that were responsible for approximately 80 percent of the missed deliveries. This affects the throughput of the distribution process, by creating an unnecessary stockpile of inventory that should have been delivered on schedule.
Solution: Supplier Evaluation
Upon discovery of this problem, our first steps were to identify which suppliers were not meeting company standards through a thorough assessment of performance evaluations, taking a deep dive into the critical suppliers at the root of the missed deliveries dilemma. Part of our evaluation relied on our LEAN 4-C production assessment, looking at: capacity, capability, quality control, and fluidity of change to include new design into manufacturing. This approach looks at the capacity of each supplier, their capability to meet required demands, controlled inspections to ensure quality standards are met and to make sure the current working model or structure is easily adaptable for new design changes to be implemented into manufacturing. The formulation of new mitigating plans and track actions needs to be drafted to create a more productive system of supplier delivery accountability.
A significant contributor to the missed deliveries Zodiac suffered was in result of a large backlog, containing new design changes and modifications that had a direct impact on the quality, timing, and distribution process of supplier deliveries.
Solution: Backlog Reduction / Flow Control
The first objective for this area of concern is it catch up as much as possible, reducing the existing oversized backlog and to regain control of the inflow/implementation of new design changes/modifications into manufacturing. To do this, an assessment of rationale, status, and workload of current/existing changes needed to be made, in addition to filtering new changes and setting boundaries and priorities. Next, a burndown plan, complete with resource requirements is to be scheduled, followed by setting the governance of inflow control & burn down execution. The purpose of these steps is to realign and increase the throughput of the backlog while it adapts to new changes in design introduced into manufacturing.
A significant contributor to the missed deliveries Zodiac suffered was in result of a large backlog, containing new design changes and modifications that had a direct impact on the quality, timing, and distribution process of supplier deliveries.
Solution: Invent Inventory Solution
The first objective for this area of concern is it catch up as much as possible, reducing the existing oversized backlog and to regain control of the inflow/implementation of new design changes/modifications into manufacturing. To do this, an assessment of rationale, status, and workload of current/existing changes needed to be made, in addition to filtering new changes and setting boundaries and priorities. Next, a burndown plan, complete with resource requirements is to be scheduled, followed by setting the governance of inflow control & burn down execution. The purpose of these steps is to realign and increase the throughput of the backlog while it adapts to new changes in design introduced into manufacturing.
FTE Performance’s Output
We were able to customize a tailored team of concentrated experts to redefine and increase the overall throughput of supplier delivery manufacturing and processing. To address inventory shortages and concerns, “supply chain reports” were developed to provide visibility to communicate shortages for both internal and external parts. Also, first and second level analysis for root causes to shortages were completed and corrective actions implemented, addressing the top 4 causes. Based on several calculated factors we input appropriate buffer stock levels into the MRP system.
The supplier crisis of falling short on a significant portion of deliveries to Airbus A350 was addressed by deploying, coordinating, and managing on-site supplier quality control reps at the top 4 critical suppliers. As a result, on-time delivery by suppliers improved from 94% to over 98% in one month. Backlogs of new design changes and modifications were significantly reduced, clearing up a lot of processing time, reducing any holdups to new design changes into manufacturing.
Overall, we were able to create a more efficient workflow, increasing several areas of production efficiency, introduced proficient methods of inventory shortage management, and reduced the backlog to increase its throughput of new design changes into manufacturing in turn reducing time needed for changes, thus keeping deliveries on-time re-establishing our client as a dominant global leader for aerospace safety component equipment manufacturing and distribution.
SERVICES PROVIDED
“FTE Performance Consulting helped optimize our warehouse layout, storage, material flow and kitting processes with significant throughput improvement in three different facilities. We set new annual Sales and EBITA records in Q3, which were achieved with the optimization efforts led by FTE’s guidance contributing a great deal. They are very “hands-on” and we highly recommend FTE!”John HanighenCEOCloyes Corporation
“FTE helped us improve the throughput and quality in three of our critical factories. They did not just make a list of things for others to go do. They became a part of the team and brought the experience, leadership, processes, tools, and capacity to complement our production and continuous improvement teams in actually making the improvements on the shop floor. The results exceeded targets and have been sustained through continued use of the processes and systems deployed.”Jeff SchickVice President ManufacturingPella Corporation
“We worked hard, laughed, and jabbed. We appreciate FTE becoming part of our team and are absolutely looking forward to partnering again in the future.”Ann FrickeDirector of OperationsDakkota Integrated Systems
“What differentiates FTE from other Lean Consulting firms
is their flexibility and adaptability.”Tim FoleyDirector, Performance and LearningNavistar International
“I wholeheartedly recommend FTE to colleagues and associates. It’s a team full of cutting-edge talent, with dedication, and passion for creating stability and standardization within our organization”Tim HoganDistrict Director of ServiceRush Enterprises, Inc.
“Not only do they possess deep knowledge of Lean Manufacturing, but they also know how to transform organizations with practical and proven solutions.”Steve St. AngeloCEOAmerican KaizenFormer Senior Managing Officer of Toyota Motor Corporation and Chief Executive Officer, Latin America, and Caribbean Region
“FTE Performance Consulting was outstanding in their performance with scoping, managing, and implementing the MES System in our Paint facility.”Justin SchlaterIT Director AssociateNavistar International
“FTE is not a company to just tell you what needs to be improved, they will lead the improvement, ensure the alignment of leaders and that processes are in place to sustain gains.”John MocnyGeneral Manager, Vehicle and Supply Chain OperationsHarley-Davidson Motor Company