Case study

Lean asset structuring in high tech component manufacturing

Situation

A high tech component manufacturer had aggressive growth plans over next five-year period. A consultant was asked to help with facilities rationalization in view of operational expansion plans. Delivery Partners performed modeling of facilities footprint.

Our work

  • Applied lean asset structuring approach
  • Helped determine strategic value and performance of processes and fixed assets
  • Used modeling tool to optimize facility footprint, including determination of revised facility roles and missions (change in manufacturing strategy)

Results

  • Operational cost reduction from implementation of operational improvements
  • Ten percent of facilities recommended for rationalization based on strategic value and cost modeling analysis
  • Significant reduction in planned capital investment based on improved utilization of global capacity and implemented productivity improvements to current assets