Case Study
Streamlining Processes & Saving Time
Background
Absolute Quality Manufacturing (AQM) is a leading provider of cable harnesses and control panel with manufacturing solutions optimizing production processes for efficiency and quality. AQM approached the client, a large OEM company, offering resources to collaborate in improving their operations to save time, reduce waste, and enhance overall productivity.
Challenge
The client was grappling with inefficiencies across their supply chain, resulting in excessive time consumption, high waste generation, and increased inventory storage requirements. Their traditional inventory management methods were leading to overproduction, delayed shipments, and unnecessary stockpiling of raw components.
Solution
AQM conducted a thorough analysis of the client’s existing processes and identified several areas for improvement. They proposed a comprehensive solution that involved implementing Just-in-Time (JIT) manufacturing principles and redesigning the packaging and shipping workflows. The key components of the solution included:
Process optimization
AQM redesigned their production process to minimize downtime and reduce cycle times. By implementing lean manufacturing techniques, they streamlined workflows, eliminated bottlenecks, and improved overall equipment effectiveness (OEE).
Packaging innovation
AQM introduced innovative packaging and transit solutions that reduced material waste and improved product protection during transit. They implemented packaging systems to increase efficiency and accuracy while reducing an hour of combined labor at both faculties per unit built.
Shipping Efficiency
AQM optimized the shipping process by establishing a strategic partnership with a logistics provider and implementing real-time tracking systems. This allowed the client to achieve faster delivery times and reduce transportation costs. With regular runs, reusable packaging was used to reduce cost.
Inventory Management
AQM introduced Just-in-Time inventory management practices, enabling the client to maintain optimal inventory levels and minimize excess stockpiling. By synchronizing production with demand, the customer reduced inventory carrying costs and was able to repurpose inventory locations for revenue generating production. The product was also shipped into the client’s facility as kit that was brought directly to the point of use.
results
The implementation of AQM’s solution yielded significant benefits for both AQM and the client:
TIME SAVINGS
The client experienced a remarkable reduction in production, packaging, and shipping times, saving approximately 40 hours per week. This allowed them to fulfill orders more efficiently and respond quickly to changing market demands.
OPERATIONAL EFFICIENCY
AQM also saved 30 hours of time internally through improved processes and streamlined workflows. This freed up resources to focus on innovation and further improvements.
WASTE REDUCTION
The implementation of lean manufacturing principles and innovative packaging solutions led to a substantial reduction in waste generation across the entire supply chain. This not only minimized environmental impact but also resulted in cost savings for the client.
JIT IMPLEMENTATION
By adopting Just-in-Time manufacturing practices, the client significantly reduced inventory storage needs and eliminated excess stockpiling. This freed up valuable warehouse space and reduced holding costs.
conclusion
Absolute Quality Manufacturing’s innovative solution transformed the client’s manufacturing operations, delivering substantial time savings, increased efficiency, and cost reductions. By embracing JIT manufacturing, optimizing processes, and implementing innovative packaging and shipping solutions, AQM helped the client achieve significant improvements in productivity and competitiveness. This successful collaboration underscores AQM’s commitment to delivering value-driven manufacturing solutions tailored to meet the unique needs of their clients.
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