The Challenge:
This client, a world leader in heavy equipment manufacturing and aftermarket parts distribution engaged our company to turnaround their global master depot as it scaled up to support 13 North American distribution centers and global export operations.
Results:
Our team conducted a detailed analysis to identify constraints in leadership, culture, processes, and performance measures. Following the analysis in a combined classroom and learn–by-doing method, we implemented a management operating system. Supervisors were mentored through daily, weekly and monthly structured routines outlined in operations playbooks which include: shift turnover processes, planning and scheduling, audits, scorecards, and visual management.
Highlights this client achieved include:
- $3.0M reduction in annual labor and demerge expense
- 60% reduction in Overtime – first time in 3 years the operation has not been on mandatory overtime.
- 20% reduction in export backlog
- 50% reduction in leased contained expense
