The situation:

Our client, a supplier of modules for power plants, underwent rapid growth but did not adjust the controlling. The company was using a production control system that was incompatible with its product-oriented controlling. Our client was unaware of the company’s productivity economics and unable to realize its full potential. Because of time restrictions it was impossible to develop an IT system to gather the necessary data within a short period of time. Yet currency and capacity issues, as well as the pressure to reduce costs, required our client to increase productivity drastically while decreasing cycle times.

Our services:

tivona partners fed the existing manual data into an OLAP-cube and analyzed the product portfolio. Our team implemented a number of changes. To monitor and safeguard progress tivona partners installed a system to deliver monthly reports.

Next, our team fully optimized the production process. We ran zero-based production scenarios: we performed a software-based simulation of the production layout and reengineered manufacturing as well as production support processes. In addition, all administrative processes were aligned with the new production structure. To do this, our team benchmarked the budget and key data.

Benefits for the client:

tivona partners analyzed the efficiency of our client’s facilities and implemented a number of changes. As a result, individual machines will be used more efficiently and production will increase. Machines will be serviced regularly, which will reduce the amount of time machines and production stand still significantly. Optimizing the supply chain further eliminated obstacles to productivity (i.e. standstills due new equipment being delivered behind schedule). Switching from procedural to unit production will shorten set-up times and further reduce the amount of unplanned standstills. Our client will be able to make much more efficient use of the production facilities. Optimizing the production processes will reduce cycle times and, not least because the shift system was modified as well, capacity will increase by twenty percent. Our client will be able to reduce his annual costs by € 3 million. The investment has a payback period of only eighteen months.
Our client’s needs were met: production costs as well as cycle times were reduced and, by reengineering the production process and by optimizing logistics, capacities were increased.