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Organizational Optimization-171
The Situation:
An international manufacturer of specialized printing, publishing and converting papers was experiencing severe pressure to maintain competitiveness during what has been and continues to be a very difficult period for the industry. The Highland Group was asked to assist them in becoming one of the most efficient producers of specialty papers in North America while maintaining their industry position.
The Driver Goal:
- Reduce customer service lead times by 50%
- Reduce order to delivery costs by 3 cents per pound
- Reduce inventory by $10 million
Actions Taken:
- Optimized back office efficiency and effectiveness by implementing lean office techniques to shorten process times, reduce lost time, eliminate obsolete and redundant reports
- Optimized production efficiency by implementing lean manufacturing techniques to shorten cycle times; reduce lost time and process downtime; increase flexibility, communication and visual factory signaling; improve control and operator effectiveness; and reduce cull and broke
- Developed and implemented total Preventive and Predictive Maintenance systems that standardized maintenance activities and provided improved equipment effectiveness for Paper Manufacturing Operations
- Migrated the inventory management process from forecast/push to demand/pull
The Results:
- Reduced operating costs by $21 million
- Reduced man hours per ton from 6.3 to 4.8 against an industry average of 5 man hours per ton
- Reduced customer service lead times by more than 55%
- Reduced order to delivery costs by more than 3 cents per pound
- Reduced inventory by $12 million
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