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High-Precision Manufacturer

NEEDS-BASED RESULTS

 

High-Precision Manufacturer

SITUATION

Manufacturer of tools for complex electronic equipment was experiencing a 60% reduction in sales due to the economic downturn and needed help in managing inventory.

DRIVER GOAL

  • Determine the appropriate manufacturing model.
  • Encourage stakeholder involvement during the design process to build in quicker assembly and checkout support.

RESULT

  • Defined a manufacturing strategy that maximizes inventory turns.
  • Validated the gating process to ensure that all projects deliver expected business results.
CS-169 large

Case Study

Optimize Product Development Lifecycle & Reduce Inventory

Issue

A manufacturer of tools for complex electronic equipment for the automotive electronics, semiconductor and wireless telecommunications industries was experiencing a 60% reduction in sales due to the economic downturn. Overall, the company’s leadership was experienced in managing through the cyclical financial swings typical of the industry, but they sought assistance in managing inventory, which was exacerbated by the downturn. It was important that the company formalize the product life cycle continuum and reinforce the stage gate process to validate assumptions driving new product introduction at each phase of the development process.

Highland Approach

The Highland Group enlisted key stakeholders in an analysis of the company’s New Product Introduction process, identifying and detailing the key issues driving excess inventory, and then developed an optimized manufacturing strategy. The co-team validated and tightened down the existing product life cycle process from new product introduction idea generation through obsolescence and spare parts support.

Actions Taken

  • Determined the appropriate manufacturing strategy by business unit and product.
  • Identified the products within each business unit that needed to be reengineered to fit the appropriate strategy.
  • Ensured that all current New Product Introduction projects conform to the build strategy.
  • Reviewed the New Product Introduction process to validate strategies for product end of life, cannibalization, service and material risk buy.
  • Developed a process to rank and select product initiatives based on sound business criteria.
  • Ensured project management interfaces and systems provided proper communication to project status, issues encountered, cost incurred, and time and cost remaining.
  • Developed a process of early involvement of all key stakeholders to minimize the potential over-commitment to inventory.
  • Emphasized concurrent, cross-functional teams using best practices to reduce rework, missed deadlines and poor quality.

Developed a methodology for the selection and prioritization of re-design initiatives

Related Information

Project Leader

Manufacturing & Industrial

Joseph is a senior executive with more than 40 years of international industry management and consulting experience, primarily in the areas of process improvement, working capital optimization and operational metrics. Having served in more than 21 countries around Latin America, the Caribbean, the Pacific Rim, and North America, Joseph is skilled at implementing successful and sustainable change programs in culturally diverse environments.

Project Leader

Sales, Marketing & Consumer Products

North America

Bill is a senior project leader with more than 20 years of hands-on experience in assisting multinational companies by deploying his expertise in Lean Six Sigma and Business Process Management tools, tactics and strategies. He has deep expertise in sales and marketing improvement, supply chain optimization, fixed-cost reduction, channel management, total production management, balanced scorecards and post-merger integration.