Reduce Cycle Time-155
The Situation:
An internal supplier to the aerospace industry was not able to produce at rate and on budget. One “ship-set”, (valued at one million dollars), took an average of 27,000 hours and 25-35 calendar weeks to complete. The existing management system did not include meaningful metrics or key performance indicators. They were consistently over budget in hours and late for delivery, with little or no visibility of the root causes. The Highland Group was asked to help the production unit produce within the budgeted hours and deliver on schedule.
The Driver Goal:
- Reduce the hours per tail (ship-set) by 5000 hours
- Produce two ship-sets per month
Actions Taken:
- Re-engineered processes, management systems, and the organization to create a cell-based production environment based on Lean principles
- Implemented lean disciplines by cell
- Developed and implemented a system for managing for the organization and by cell to ensure sustainability
The Results:
- Reduced hours per tail by more than 5000 hours
- Achieved a sustainable production rate of two ship-sets per month
- Reduced work in progress by 44%
- Reduced planned cycle time from 26 weeks to 15 weeks or 42%
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