Recent Results

Oil Production

  • Issue: Oil producer was experiencing long and unpredictable plant maintenance turnarounds. Outage durations consistently exceeded plans and budgets resulting in lost production and excessive maintenance costs.
  • Solution: Applied lean techniques including:
    • SMED (task separation, conversion, and simplification to complete outage tasks outside the outage window),
    • Constraint Reduction (e.g., dramatically improved critical path management),
    • Visual Controls (e.g., optimized Outage Command Center),
    • Streamlined Collaborative Planning (e.g., earlier and greater involvement of contractors and cross functional personnel), and
    • High impact metric capture and utilization (e.g., shift in focus from “Cost only” to Cost and Duration).
  • Result:  Greater Profits – More stable outage planning and execution process with a reduction in outage durations of 10-15% resulting in increased production valued at $25 million increase in annual profit.  Reduced Costs – Decrease in outage costs valued at $2-3 million annualized.  Improved Collaboration – Significantly improved collaboration among all groups, greater performance reporting transparency, and improved continuous improvement through capture and application of lessons from one outage to another.
Global Machined Products Manufacturer

  • Issue: Too many warehouses, ever increasing distribution costs
  • Solution: Optimizing the current manufacturing and distribution network showed significant savings by relocating product lines and consolidating manufacturing and distribution footprint.  A 2 DC solution was selected from 30 potential North American DC sites for parts distribution and imported finished goods.
  • Results: Reduction of 16% in total logistics cost
Industrial Components Distributor

  • Issue: High inventory
  • Solution: Used six sigma tools to identify that 40% of the inventory in the distribution center was obsolete
  • Results: Converted 70% of the dead inventory into cash through sales
Automotive Processing Center

  • Issue: Desire to delay needed expansion
  • Solution: Used lean flow and inventory management techniques
  • Results:  Reduced manufacturing capacity utilization from 97% to 61% in 12 months, delaying a $25M investment by 7 years
Paper Industry Supplier

  • Issue: Cash flow constraint
  • Solution: Used lean sigma techniques in their accounts payable process
  • Results: Increased cash flow by $186K/month
Automotive Parts Distributor

  • Issue: Warehouse storage capacity
  • Solution: Statistical safety stock to improve both inventory turns and order fill
  • Results:  Reduced distribution center storage capacity utilization from 96% to 81% in 6 months, delaying a $30M investment by 5 years
Industrial Supplies Distributor

  • Issue: Slow moving raw material inventory
  • Solution: Implemented integrated commodity team management techniques and  multi echelon inventory planning
  • Results: Improve total supply chain inventory turns from <4 to >6 on $100M
Plumbing Supplies Distributor

  • Issue: Acquisition integration, increased sales, need for quicker delivery
  • Solution: Design distribution racking layout and product slotting optimization
  • Results: Lower shipping and warehousing cost with improved delivery lead time