• 9% loss in sales last year
• Targeted for outsourcing
• 120 union jobs at stake
• 30% improvement in controllable plant costs and 5% ROS required to keep business in-house
• Internal workshops identified only 15% best case

• Redesign current production system and implement the new model to deliver improvements in material and information flow
• Redesign of all major support systems including Quality, Maintenance, Scheduling, H.R., etc. to support and sustain new production system
• Effort included knowledge transfer to client team to ensure sustainability and promote internal capabilities

Results:

• Capital avoidance of $1.5 million automated system
• Cash savings from 75% reduction in WIP
• Elimination of C shift for all but component production area, allowing PM during C shift
• Cycle time improvements on critical equipment
  • 17% improvement on 2 of 3 component machines
  • 60% improvement on 4 assembly process machines
• Quicker, more frequent changeovers on 4 test stands: from ~10 c/o per day at 5 minutes to 140 c/o per day at 20 seconds
• Qualitative benefits
  • Operator support, teamwork, communication, rapid feedback on defects, easier visual management, supervisors focus on improvement