Crisis Management
Customer – Tier 1 Supplier
- OT Reduction better than forecast within 2 weeks
- Inventory accuracy improvement from 72% to 96%
- Labor headcount reduction from 761 to 598
CASE STUDIES
Our Client’s Successes
Profit Improved
Customer – Tier 1 Supplier
Plant – 1M sq ft with 1,300 team members
Results
- Monthly profit improved by 4%
- Throughput improvement and schedule attainment
- Customer downtime eliminated
- Based on customer downtime elimination alone, payback for investment in Spectrum ($1.2M) was three months
Problem
- Customer downtime penalties of $500K a month
- Struggling to maintain supply to their customer for the launch of a new model
- Multiple examples of costly downtime for their customer due to component supply constraints
Solution Approach
- Spectrum team of both operations leadership and materials leadership engaged to accelerate the turnaround and protect the OEM.
- Spectrum redesigned the material flow and installed containment management of Tier 2 component suppliers.
- Spectrum installed qualified first-line supervision on the plant floor as well as several operations management positions.
- A “back to basics” approach was applied to improve throughput throughout the plant.
- Planning and scheduling materials resources were installed to supplement the existing resources.
- Spectrum remained on site with a small team in a continuous improvement mode as well as continued training of the client resources.