Distributor of oil & gas products

CASE STUDY

About the opportunity

The client is one of the largest motion control distribution companies offering an extensive inventory of hydraulic, pneumatic, and electromechanical products. The client serves the OEM market, providing motion control components for end products, and the MRO market, providing custom motion control systems and expert service and repair for production lines.

The Challenge

The client’s industry was becoming increasingly competitive. Oil demand was increasing, and rig count was decreasing. Cost inflation over the past decade has been dramatically impacting O&G companies profitability. Reducing costs was a priority for this client, which launched a major initiative at its two largest distribution facilities.

Solution

The engagement consisted of two parallel phases explained as follows:

Phase 1 – A value stream map was completed for the order fulfillment process at each facility resulting in an implementation plan. We supported the completion of the implementation plan by facilitating kaizen workshops and implementing basic operations management principles to monitor and improve the operation.

Phase 2 – We put the top leaders in each facility through a series of training workshops to enhance their leadership skills and provide them with lean management tools. Ultimately this helped create stability and a continuous improvement culture.

Results

We helped this client reach the following:
• Reduce product assembly lead times by 74% (from 26.5 to 7 hours)
• Improved on-time delivery at one location by 72% (from 55% to 95%)
• Reduced shipping errors by 75% (from 1,65% to 0.4%)
• Reduce fabrication operation labor by 20% ($80K in savings)

About Us

We help manufacturers achieve and sustain operational costs reductions of 20%+, improve on-time delivery to 99%+, and reduce defects to improve product quality to 99%+. These changes help our clients grow company profit margins by up to 25%.
We have developed and used a proven approach to ensure manufacturers achieve and sustain significant performance improvement. Our consultants have over 15 years of experience working with manufacturers and developing their capabilities.

READY TO GROW YOUR MANUFACTURING BUSINESS PROFITABLY ?

Get In Touch

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40 Park Ave , Brooklyn , New York

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