Case Studies
A major player in the Medical Instrumentation Industry had a very complex product line with over 765 part numbers. Their first objective was to identify a more effective process in which to manage the large number of parts, reduce inventory levels and reduce lead-times to their customer base. A second objective was to identify a better process of control when programs went into the end of life phase. Finally, they were looking to consolidate their vendor base but were having difficulty identifying a supplier that could meet all of their needs.
Craftsman Custom Metals (CCM) proposed using a dedicated manufacturing cell capable of producing minimum runs based on production requirements. Also a KanBan inventory system would be introduced to reduce inventory levels. CCM provided an on-site material manager located within the customer's facility to control the material feed to the customer's manufacturing floor, JIT.
The KanBan inventory system combined with an on-site material manager lowered the amount of inventory on the customer's floor from 4 weeks to 2 days. It also increased the amount of space available in their facility for final assembly, testing and shipment of product. The benefit to the customer was a reduction in the amount of time needed in their manufacturing cycle, increasing their throughput by 20%.
The CCM system made it possible to produce a high mix of products with drastically reduced lead-times, which in turn, allowed the customer to win additional business, increase throughput and minimized their end of life material risk.
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