Improving Kit Production to Reduce Backlogs

The Challenge:

Following two successful projects, Carpedia was asked to look at what could be done to improve manufacturing scheduling tools, production of kits, and outsourcing processes. To keep up with increasing demand for products, better capacity planning tools were needed. An outsourcing department needed to be created and trained with well defined processes and proper system tools.  Issues with production of kits had caused shipping delays and unnecessary costs. An analysis of these areas produced an approach for improvement, and a project – MacDon 3 – was launched to execute the improvement plan.

The Results:

The project generated savings three times the project requirement, and reached break even cash flow well ahead of schedule. Key developments during the project allowed manufacturing to achieve an aggressive schedule, with a 60% increase in units produced over the previous year.

Development and installation of capacity planning tools:

• Provided visibility to potential constraints at the work center level
• Provided information to take proactive steps to relieve constraints
• Provided the information needed to outsourcing parts production and achieve schedule
• Development of a streamlined outsourcing department:
• Created new processes to handle large volume increases
• Reduced cycle time and on-time delivery of parts back into production
• Reduced costs of outsourced parts with improved system tools
• Improved negotiation process with supplier base

Improved production of kits:

• Reduced cycle time from order to assembly by 50%
• Developed planning tools to establish crewing requirements in order to hit schedule
• Developed standards to enable scheduling and measurement of the process
• Production of kits were completed for the season 100% on time

The Client Experience:

“Carpedia has successfully completed the third assignment of work with MacDon Industries Ltd. These projects have covered everything from shop floor processes and controls, supply chain initiatives, to rough cut capacity and production planning. Carpedia’s quick understanding of our situation, professional and focused approach on results, flexibility to work with us as new needs arose, combined with a strong rapport with all levels of our organization provided an excellent catalyst and support for successful change. The results of these initiatives have consistently exceeded our expectations and we have equally enjoyed many benefits that are not so easy to quantify by having Carpedia as part of our team.”

Vice President, MacDon Industries Ltd.