Lean Management, Optimization of Operations

Context

Our client employing 50 people with a turnover of €10.5 million in 2022, aimed to optimize its supply chain and implement lean fundamentals to enhance operational excellence. The primary issues included internal non-quality recorded through non-conformity tickets, inefficient planning processes requiring a lot of manual tasks, and a need to implement forecasting processes.

Objectives

Qualitative:

• Increase customer satisfaction

• Reduce non-quality issues and costs

• Improve operations planning

• Reduce inventory

• Digitize operations

Analysis of Non-Conformity Tickets:

• Characterized quality issues and identified root causes.

• 246 tickets analyzed, with 66% of problems concentrated on 9 specific issues.

• Defined an action plan to reduce the current problems.

1. Planning Processes:

   • Formalized the current process and identified the main issues.

   • Proposed an action plan to digitize and optimize the process.

2. Inventory Management and Forecasting:

   • Reviewed and optimized the forecasting and safety stock calculation processes.

Our Recommendations

Implementation of a Dashboard to monitor non-conformities.

1. Semi-Annual Follow-Up and Analysis of Non-Conformity Tickets to continuously improve quality.

2. Establish a quality governance system to oversee and manage quality-related processes.

3. Implementation of specific action plans to solve identified problems.

Our Solutions

Expected Deliverables:

• Dashboard for non-conformity monitoring

• Report on root cause analysis for non-conformities

• Optimized and formalized planning and forecasting procedures

• Semi-annual analysis report

Benefits

Expected Performance Gains (Before vs. After Dillygence Intervention):

Before:

• The pragmatic forecasting method used to manage component supply had not been qualified and risked generating overstocks and/or shortages.

After:

• The forecasting method was validated through its comparison with a best-in-class method, confirming its short-term application.

• The implementation of the best-in-class method presents a challenge in reducing stock coverage by more than a month but requires an evolution of the information system.