Success Stories
Background
This engagement between a private equity firm and Allied Logistics represents a strategic initiative aimed at revitalizing the operations of an industrial manufacturer facing significant operational challenges. The manufacturer was grappling with two critical issues: widespread inventory inaccuracy and raw material receiving backlogs, both of which were having a detrimental impact on its production processes and overall efficiency.
Actions Taken
1. Conducted Value Stream Map and Value Stream Design: This step involved a comprehensive analysis of the manufacturer’s current operational processes. A Value Stream Map, a visual representation of the end-to-end processes from raw material acquisition to product delivery, was created. This map enabled the identification of bottlenecks, inefficiencies, and areas where improvements could be made. Value Stream Design, which followed, focused on envisioning an optimized future state of operations. This step provided a clear vision of the desired improvements and served as a foundation for subsequent actions.
2. Created Project Roadmap with Deliverables, Timelines, and KPIs: A well-defined project roadmap was developed to guide the transformation process. This roadmap outlined the various stages of the project, the specific deliverables to be achieved at each stage, the associated timelines for completion, and the Key Performance Indicators (KPIs) that would be used to measure success. This step ensured transparency, accountability, and a structured approach to the transformation, while also facilitating effective communication among stakeholders.
3. Standardized Receiving Process and Implemented Barcode Scanning: To address the challenge of inventory inaccuracy, the receiving process for raw materials was standardized. This likely involved creating clear protocols and guidelines for receiving, inspecting, and recording incoming materials. To enhance accuracy and real-time visibility, barcode scanning technology was implemented. This technology allowed for swift and precise tracking of inventory movements, minimizing the chances of errors associated with manual data entry and ensuring that inventory records were always up-to-date.
4. Built Kanban Pull Systems for Raw Material Replenishment: To address the issue of raw material receiving backlogs and streamline material flow to production, Kanban pull systems were introduced. These systems work based on actual consumption signals from the production process. When a specific quantity of materials is used up, a signal is sent to trigger the replenishment of that material. This “pull” approach ensures that raw materials are replenished only when needed, reducing the risk of overstocking or shortages and promoting a more efficient and responsive supply chain.
Result
The achieved results of the facility transformation overseen by Allied Logistics demonstrate the significant positive impact that the strategic initiatives and process improvements had on the industrial manufacturer’s operations. These results directly address the initial challenges, boosted production by more than 20% and reduced end product lead times by 2 months.
Success Stories
Background
In this scenario, a manufacturer had undertaken an ambitious multi-million dollar insourcing project, aiming to transition certain production processes from external suppliers to their own facilities. This strategic move is driven by the desire to exert greater control over their operations, enhance efficiency, and potentially achieve cost savings. Recognizing the complexity of this endeavor, the manufacturer engaged Allied Logistics to provide expertise and support across various pivotal components of the project.\
Actions Taken:
1. Created a Warehouse Design with Material Flow and Long-Term Vision and Strategy in Mind: Developing a warehouse design is a foundational step in optimizing operational efficiency. In this case, the design takes into account not only the current requirements but also long-term goals. The emphasis on material flow indicates careful consideration of how materials move through the warehouse to minimize unnecessary handling, reduce bottlenecks, and maximize throughput. The inclusion of a long-term vision and strategy suggests that the design is forward-thinking, accommodating potential future changes in production processes, storage needs, and technological advancements.
2. Built a Plan-For-Every-Part (PFEP): A Plan-For-Every-Part (PFEP) is a comprehensive strategy that ensures the availability of the right parts in the right quantities at the right time. The PFEP contains crucial data such as consumption rates (how quickly parts are used), lead times (time it takes to replenish), and optimal inventory quantities. This data-driven approach minimizes the risk of stockouts, overstocking, and production delays. By maintaining accurate information on every part, the manufacturer can make informed decisions and maintain efficient inventory levels.
3. Designed Kit Carts with Staging Areas, Part Picking Zones, and Visual Management: Kit carts play a pivotal role in streamlining assembly processes. The design of kit carts is strategic, considering various aspects:
- Staging Areas: These designated spaces allow for organized preparation of materials before assembly. Staging areas enhance efficiency by ensuring that all required components are readily available, reducing assembly time and the risk of missing parts.
- Part Picking Zones: Efficient picking zones are designated for selecting components required for each assembly. These zones are likely organized logically, following principles like the most frequently used parts being placed closer to the assembly area.
- Drop Zones for Assembly: Once the kits are prepared, drop zones facilitate seamless transfer to the assembly area. This minimizes interruptions and ensures a smooth handover of materials to the assembly line.
- Visual Management: Visual cues like labels, color coding, and signage enhance the efficiency of the kit cart process. They make it easier for workers to identify the contents, follow assembly instructions, and move carts smoothly through the workflow.
Result
The successful completion of the warehouse and material flow project, undertaken with a long-term vision in mind, has yielded significant benefits for the company. The project’s strategic approach has not only achieved its immediate goals but also positioned the company for sustained growth and adaptability in response to changing market demands
Success Stories
Background
Allied Logistics engineered a new material delivery route and standardized processes for warehouse operations to address an industrial manufacturer’s plagued line-down time caused by an inability to efficiently move raw material to the production line.
Process
Conducted Value Stream Map and Value Stream Design:
In this step, a thorough analysis of the existing processes and workflows within the organization was performed. This involved creating a visual representation of the entire value stream, from the initial input of resources to the final delivery of the product or service. The Value Stream Map provided a comprehensive view of each step involved and helped identify any bottlenecks, inefficiencies, or areas of improvement. Subsequently, a Value Stream Design was developed to outline the desired future state of the value stream, incorporating changes and enhancements to optimize the process flow and overall efficiency.
Created Project Roadmap with Deliverables, Timelines, and KPIs:
To guide the project’s execution and ensure successful outcomes, a project roadmap was crafted. This roadmap provided a structured overview of the project’s objectives, key deliverables, specific timelines for completion, and measurable Key Performance Indicators (KPIs) to gauge progress and success. By clearly defining these elements, the roadmap served as a navigational tool for the project team, stakeholders, and management to track and monitor the project’s advancement and accomplishments.
Implemented Kanban Pull Systems for Raw Material Replenishment:
The implementation of Kanban pull systems aimed to streamline the replenishment process of raw materials. Kanban is a visual signaling system that helps control inventory levels and production flow. By utilizing Kanban cards or signals, the system signaled the need for raw material replenishment based on consumption rates. This approach prevented overstocking and minimized shortages, leading to more efficient resource management, reduced waste, and improved production efficiency.
Created Layered Process Audit for System Breakdowns and Escalation:
The creation of a layered process audit introduced a structured method to identify and address potential system breakdowns within the organization. This multi-level audit process involved systematically reviewing each layer of the organization’s processes, from the operational level to the management level. The audit aimed to catch deviations, inefficiencies, or quality issues early on, allowing for timely intervention. Additionally, the audit process facilitated an organized escalation path, ensuring that significant issues could be promptly addressed and resolved by management, preventing further complications and ensuring consistent process improvement.
Result
Over the span of just 8 months, the organization experienced a substantial surge in its production output, boasting an impressive increase of nearly 47%. This achievement signifies a significant milestone in the organization’s pursuit of enhanced efficiency and operational excellence.
