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

Testimonials

“I could actually see what other departments were doing. I had no idea why processing an order was taking so long. I only saw things through my perspective. Committing three days of my time was definitely worth it.”
– Sales Manager, High-Tech, Boston, MA

“The WorkOut Session brought the people closest to work together in an unrestricted environment to really look at the problem and make recommendations on what’s best for the process.”
– Director Operations (Sponsor), High-Tech, Boston, MA

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