Re-Organisation of an electronics SME company, following a successful 3 months ERP implementation.
Manager:
Mr.D. V.
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Customer:
Confidential
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Role:
Projectmanager Re-Organisation
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Location:
Germany
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Turnover:
EUR 20 Million (2001)
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Time frame:
6 month
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No. of employees:
200 (1999), 150 (2001, after restructuring)
About the Customer
The (confidential) has been an Electronics Manufacturing Services company in the industry segments medical, military, circuit noard manifacturing and special PC enclosures for high hygiene standards, anti spy and dust/moisture resistance.
One of ROI’s unique products were grafic cards for the printing industry, which made them a single source for Heidelberger Druckmaschinen.
Testimonial from Сustomer
Cutting inventory half by including the inventories in planning and execution.
Accurat inventory managment with receiving and inspection on serial number level.
Margin based order intake process implemented.
Running a full cost analysis on all departments revealed that one section was permanently making losses. We managed to agree on a package for approx. 30 employees including the former CEO and outsourced that operation to their new company.
Implementing of accurat inventory evaluation through proper standard costs.
By implementing a consistent MRPII concept, we could drastically improve the complete supply chain. By getting more control over the supply chain, we discovered major planning problems related to a master agreement with Heidelberger Druckmaschinen…. but this time on the Heidelberger Druckmaschinen side.
One co-worker in warehousing worked so well in the project, that he could be promoted to an IT function in the IT depatment.
The manager of the work preparation and shop floor planning department, could be promoted to the head of production, since he successfully supported the restructuring project through his excellent work.
Leadtime reduction of the order-release-to-ready-for-shipment process, from one week to max 4 hours.
Implementation of a material availability based production order release process, which improved the whole manufacturing situation.
Implementation of a pro-active debit management to increase liquidity.
During re-organisation, we implemented a process documentation process, that allowed the company to successfully pass the ISO 9001 certification.
By implementing all improvements, we could increase liquidity and prevent the company to file insolvency.
Situation (Challenge)
After a short but successful three months implementation (with me being the projectmanager) of a new ERP system, increased transparency surfaced many weaknesses in terms of processes and data that the management in place at that time couldn’t cope with.
Main Areas of Concern:
• Excess and obsolete inventory, through mismanagement and inapropirate planning
• Halfway picked production orders blocking the shop floor space
• Uncontrolled service and repair processes. No online guaranty validation at incoming claims.
• No consistent planning concept for hybrid manufacturing environment
• No precision and transparency on the standard costs
• No consistent production order planning and release process
• No consistent NPI (New Product Introduction) or EOL (End Of Life) process
• No consistent order intake process
• No „modern“ work methods (projectmanagement, meeting minutes, action tracker, professional and efficient meetings with predefined agendas etc etc)
Solution (Achievement)
The new interims CEO awarded us with a contract to re-organise the company. All process were subject to that re-organisation, based on a holistic approach in terms of proper process management methods.
Since the re-organisation was leading to more transparency and data quality, we were able to install a reporting system, that allowed to increase the quality of management decisions.