The assembly plant’s operating margins were hindered by excessive holding costs associated with component parts inventory buildup due to a number of product model changes.
Team Engagement Strategy
A team comprised of inventory clerks, production line associates and a shift supervisor was assembled to attack the problem using Rapid Action, an "all in one" team engagement toolkit for accelerating results.
Rapid Action Project Charter
How can we reduce the level of component parts inventory while maintaining production levels in order to improve the plant’s operating margins?
Sample of Solutions Implemented
- Analyzed all inventoried components to identify slow-moving items and established a sorting system to ensure faster cycling of all inventory components into production.
- Developed a procedure to retrofit obsolete inventoried components for reuse in new production.
- Established a communications process with a sister plant to pool excess inventory before re-ordering.
- Developed a simple kan-ban system to pull needed components more quickly into the production line.