Leading manufacturer of electronic warfare systems
As on-time shipments slipped and actual production hours drifted away from the budgets established during development, the organization risked losing competitiveness on future bids. To protect its position in this highly demanding market, the company set out to reduce hours per unit, align production costs with budget, and improve customer delivery performance through a focused, data-driven improvement effort.
The company was struggling to meet on-time shipment commitments and align actual production costs with the budget set during development. To remain competitive for future government bids, the organization needed to reduce ship-set hours per unit (HPU) and bring them in line with the budget while simultaneously improving customer delivery performance.
We began by conducting data analysis, interviews, and floor observations to thoroughly dissect each production step. Using an impact/difficulty assessment, timelines, and RACI and SPI indexes, they identified and prioritized the processes driving HPU variances. Management tools were then implemented to focus attention on and track HPUs for the critical few steps, while a dedicated war-room was created to track project deliverables. This approach enabled the implementation of both quick wins and longer-term sustainment opportunities.
The effort delivered substantial performance gains, achieving:
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