Reducing Lead Time by 10% for a Multinational Discrete Manufacturer

In the complex arena of discrete manufacturing for appliances and automotive sectors, a prominent multinational company with 200 employees and a 30M € revenue stream faced a series of significant challenges. This case study delves into how the strategic implementation of QLECTOR’s solutions turned these challenges into opportunities for growth and savings.

Challenges:

The company’s operational hurdles were multifaceted, comprising:

  • Economic Pressures: The rising minimum wage for assembly workers posed financial strains.
  • Product Diversity: Managing a vast array of 2000 different products with 1500 work orders daily, ranging from 10 to a million items per order, added complexity to production planning.
  • Inefficiency in Lead Times: Long and unpredictable lead times impeded the ability to meet demand promptly.
  • Manual Labor Allocation: The manual scheduling of workers to assembly cells was time-consuming and prone to errors.
  • Inventory Excess: A significant amount of intermediate inventory indicated a mismatch between production and demand.

    Solution:

    To address these challenges, the company turned to QLECTOR for:

    • Predictive Analytics: Implementing tools to forecast realistic lead times from real-time data.
    • Workforce Management: Optimizing the scheduling of workers, significantly reducing production time.
    • Cost Visualization: Employing visual tools to understand the opportunity costs associated with intermediate inventory levels.

    Benefits:

    The results of integrating QLECTOR’s solutions were substantial:

    • Lead Time Reduction: The company achieved a 10% decrease in lead times.
    • Financial Savings: An impressive 135,000 EUR was saved annually due to increased efficiency and reduced waste.
    • Production Uplift: The visualization tools provided insights that helped improve the allocation of workers to tasks, leading to a more streamlined production process.
    • Time saved: A graphical representation of worker efficiency before and after the implementation illustrates the enhancement in productivity, with a notable difference of almost one hour (0,5) saved per worker.

    Conclusion:

    This multinational company’s experience with QLECTOR serves as a powerful example of how digital transformation can address fundamental issues in production environments. By leveraging QLECTOR’s predictive and visual tools, the company not only achieved significant economic savings but also enhanced its operational efficiency and agility.

    Stay tuned to our use cases and blog posts for more in-depth analyses and success stories that showcase the impact of technological advancements in the industrial sector.