For any manufacturer, it’s ability to produce it’s goods is directly related to it’s processes and it’s suppliers. For one company, a critical vendor was facing profitability issues that could ultimately lead to the vendor going bankrupt. This insolvency risk was affecting the viability of the supply chain.
An agreement was negotiated with the supplier to allow an external project team to review and redesign the manufacturing process. Once the suggested improvements were agreed to by the supplier, Rapid Process Improvement Workshops (RPIWs) were implemented to focus on work simplification, automation and elimination of non-value added steps.
This project successfully generated $400K in labour savings and eliminated the insolvency risk. The ROI on this project was 9 months.