Competitiveness development through flow optimization

An aircraft maker needed to improve respose time and competiveness in the Production Unit and Central Supply Chain Management.

High speed machining and wing forming are key production areas.  Large scale industrial equipment is involved, organized by technology rather than workflow. Handling of large parts is difficult. In addition there has been continuous growth in workload due to the success of a new product.

Objectives

  • Reduce lead time and costs
  • Optimize part flows in the shop
  • Optimize area layouts
  • Enhance the new product growth to continue 

Our Approach

Starting from a deep analysis of the current situation, we proposed an improvement plan:

  • Formation of a joint project team
  • Detailed analysis of the flow based on 4 representative parts, followed by synthesis of the whole facility
  • Identification and valuation of added value through the workflows
  • Validation and selection of improvements, and development of the Implementation Plan
  • Key elements of the implementation were:
    • New production layout based on product workflows
    • Range of new inventory management techniques
    • New team structures

Our analysis of workflow and value adding highlighted:

The lead time of between 230 and 588 days consisted of

  • 60% waiting time between operations
  • 39% raw material and half manufactured WIP
  • 1% operating time

Human resource time consisted of

  • 45% REAL Added Value
  • 43% FALSE Added Value
  • 13% NON Added Value

Machine Added Value:

  • 87% REAL Added Value
  • 11% FALSE Added Value

During manufacture, parts covered a total distance of 400 to 2,200 km of which 2 to 5 km was within the production site

26% of the production area (total 22,000 sqm.)was used for storage

Results

  • Lead time was reduced from 170 to 80 days
  • FALSE Added Value reduced from 6.9M€ to 3.4M€
  • NON Added Value reduced from 1.8M€ to 1.1M€
  • Distances covered by parts within the site was reduced by 30%
  • Storage areas reduced by 20%