WorkOut
BUSINESS PROCESS IMPROVEMENT: COMPUTING SYSTEMS
The Company
The leading provider of computing systems and software for data-intensive applications that includes image processing, signal processing, and visualization.
The Situation
Orders are not being processed in a timely manner, resulting in cancelled orders and penalties, frustrating customers and staff. The lack of an effective demand planning process results in increased inventory costs, not having the right amount of the right parts and problems in meeting customer commit dates.
The Challenge
For Order Cycle WorkOut: Design a new Order Cycle Process that eliminates incomplete order packages and improves operational efficiency and customer satisfaction. For Demand Planning WorkOut: Develop a Material Demand Planning process that provides at least a 12 month Master Demand Schedule.
The Results
For Order Cycle the following results are attained:
- Implemented a more effective/efficient Order Cycle process to better support customers
- Complete Order Packages improved by 87% from 46% to 84%
- 10% reduction in cycle time
For Demand Planning the following results are attained:
- Implemented a new, improved, more effective and efficient Demand Planning process to improve inventory management and reduce inventory costs
- Reduced revenue demand drive by $13M, resulting in $3M in inventory savings in the quarter