Increasing Throughput in the USA and France
Dresser has experienced rapid growth in the markets served by the Flow Technologies business segment comprised of Dresser Consolidated and Dresser Masoneilan product brands. This segment provides customized solutions for critical flow safety systems for oil and gas, power and petrochemical process applications. Increases in orders caused backlogs to grow as plant capacities were reached and exceeded.
Ways were needed to be found to increase the velocity of orders flowing through the manufacturing plants in Alexandria Louisiana in the USA, and Conde, France. Carpedia conducted opportunity analysis at both locations and found excessive cycle times from front end order processing through to manufacturing and shipping. Projects were launched at both facilities with the intent to reduce cycle times, increase capacity and increase throughput.
Successful execution of both projects resulted in reduced cycle times of orders from entry to shipping. The increased velocity of orders generated revenue increases above and beyond project objectives. Project ROI’s and cash flow plans exceeded project objectives.
Alexandria Louisiana, USA:
- Shipped Revenue increase of 17%.
- Gross Margin increase of 18%.
- 8% cycle time improvement in Front End order processing.
- 64% cycle time improvement in Engineering.
- 22% cycle time improvement in Purchasing.
- 8% cycle time improvement in Machine Shop.
- 16% cycle time improvement in Assembly.
- Shipped Revenue increase of 56%.
- Gross Margin increase of 120%.
- Delinquent backlog reduced by equivalent of 5.2 months.
- Inventory turns increased by 42%.
- 75% cycle time improvement in Front End processing.
- Productivity increases in manufacturing areas averaged 15%.
Changes to both locations included:
- Elimination of unnecessary process steps.
- Activity re-alignment.
- Reduction of rework.
- Improved layouts.
- Improved planning and scheduling tools.
- Improved measurement and variance tools.
- Improved Active Management.
- Improved Continuous Improvement methods, tools and behaviors.
The Client Experience:
“You have a talented staff of global professionals who have delivered what was promised regarding this engagement. Significant improvements have been achieved including sustainable process change and metrics to drive further improvements.”
President, Dresser Flow Technologies Global Operations