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Production efficiency and profitability improvement

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A production centre owned by a multinational group leader in manufacturing and distribution of application cabling for multiple sectors increases plant production results by more than 25%.

Initial client situation and challenges

The production centre operational situation with high capacity saturation of its quarterly production schedule and a sustained service level deterioration was causing both sales and customers loss due to un-fulfillment of customer delivery time.

The company decides to engage in a project for improving production management and planning in order to recover the service rate and to increase by 25% the profitability of the production facility while minimizing the required investment, which entailed not to invest in additional production capacity.

Solution Approach

The analysis of production operations, contribution share per product family and the impact of the different sizes between production orders, an operational redesigning approach was launched involving engineering, maintenance, processes, production, planning, logistics and commercial teams to deploy a comprehensive and coordinated solution that will allow to:

  • Minimize bottlenecks and other stoppage associated causes, as well as the average change time between scheduled production orders.
  • Optimize the lot size and production sequencing.
  • Minimize the amount of product reference changes in the schedule with the shortest operational time.
  • Prioritize preventive maintenance on production equipment affecting production bottlenecks.

Results

After the implementation of the improvement initiatives a significant enhancement was achieved related to key production indicators, out of which optimization in the number of changes (minus 30%) and the average time of change (minus 40%) did stand out, while positively impacting on the facility profitability that bettered up by 27%.