Strategy & Operations – Innovation Strategy

Global Aerospace and Defense | Innovation Strategy

Optimizing Production and Increasing Capacity for a Global Aerospace & Defense Manufacturer with production bottlenecks, high consumer demand, and poor quality data

Impact At A Glance

Increased Production Capacity
Streamlined planning, improved data accuracy, and provided capacity visibility

Reduced Delinquent Shipments
Increased production capacity and improved planning

Improved Operational Efficency & Visibility
Production scheduling, data quality, and capacity analysis

Project Overview

A global manufacturer of aerospace and defense components was struggling to meet increasing customer demand. A production bottleneck in their machine shop was causing downstream delays and preventing the company from fulfilling orders on time. The manufacturer engaged Liberty Advisor Group to optimize production processes, increase capacity, and reduce delinquent shipments.

The Business Problem

The Challenge: Production Bottlenecks and Inconsistent Planning

The manufacturer faced a complex set of interconnected challenges:

    • Production Bottleneck: The machine shop, a critical resource for the entire facility, was unable to keep up with demand, creating a bottleneck that affected all downstream assembly lines.
    • Inconsistent Planning: Different parts of the production process were operating on different schedules, with varying levels of reliance on the core MRP system (Infor LN). This lack of coordination led to unpredictable demand on the machine shop and constant disruptions.
    • Poor MRP Data Quality: Inaccurate or outdated data within the MRP system (e.g., incorrect cycle times, stalled production orders) eroded trust in the system and made accurate planning difficult.
    • Lack of Capacity Visibility: The manufacturer lacked a clear understanding of machine shop capacity utilization, historical throughput, and efficiency, making it difficult to identify and address performance issues.

Our Solution: A Holistic Approach to Production Optimization

Liberty Advisor Group implemented a three-month engagement focused on four key areas:

1) Unified Production Schedule: We designed and implemented a new, plant-wide production schedule driven by MRP start dates. This created a single, consistent plan for the entire facility.

2) MRP Data Improvement: We led a data cleansing initiative to address inaccuracies in the MRP system. Crucially, we also implemented feedback loops, allowing shop floor personnel to easily report errors and maintain data quality over the long term.

3) Capacity Analysis and Visibility: We developed a new work center capacity analysis report, providing, for the first time, a clear view of capacity utilization, historical throughput, attainment, and efficiency. This enabled data-driven decision-making.

4) Change Management: Conducted training and worked with their internal team to align processes.

    The Outcome

    Liberty Advisor Group’s engagement delivered three major outcomes for the manufacturer:

    1) Increased Production Capacity: By streamlining planning, improving data accuracy, and providing capacity visibility, we enabled the manufacturer to significantly increase production capacity within the existing machine shop, alleviating the bottleneck. Specific capacity improvements depend on confidential client data, but the change was significant.

    2) Reduced Delinquent Shipments: The increased production capacity and improved planning led to a measurable reduction in delinquent shipments, improving customer satisfaction and reducing potential penalties.

    3) Improved Operational Efficiency and Visibility: The new production schedule, data quality improvements, and capacity analysis report provided a foundation for ongoing operational improvements. The manufacturer gained a much clearer understanding of its production processes and the ability to proactively identify and address potential issues

      Conclusion:

      Liberty Advisor Group delivered tangible improvements in manufacturing operations. By addressing the root causes of production bottlenecks – inconsistent planning, poor data quality, and lack of visibility – we helped the global aerospace and defense manufacturer increase capacity, reduce late shipments, and achieve a more efficient and predictable production process. The project provided not only immediate relief but also a sustainable framework for continued operational excellence.

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