A major complex manufacturing company needed to store material outside because the electric resistance welded mill produced more tubing than the finishing floor could handle. Considering the weather situation of the area, the materials decayed due to rust and excessive moisture. So, the project was a huge capital loss to the customer.
The MetaExpert, worked with the customer for a year and used the theory of constraint methodology to remove bottlenecks and improve the customer's production processes.
MetaExpert started with the hydro test to determine where the problem was, then attached maintenance officers to the unit and ensured their 24/7 presence. The officers were in place to prevent material decay through regular maintenance.
He also changed the planning schedule for both people and materials to enhance the flow. To improve productivity and profitability, he outsourced the processing of low volume, high-cost products to a contractor.
After outsourcing, the customer discovered it was cheaper to produce the units with a contractor than in-house.
With the periodic hydro test, losses were reduced to two and a half, two and seven, and three and a half.
There was a general increase in output with these changes to production processes. Even so, the cost difference was almost a dollar unit, which was worth a million per month.
He saved the major complex manufacturing company over $350 thousand, which otherwise would have been lost to a failed project. He proved the organization did not need an extra threading capacity because the pipe would be threaded before the hydro test.
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