Client Business Need
Advanced Material Solutions (AMS) was struggling with material shortages and excessive defects in supplier parts. As a result, productivity was hampered causing AMS to fall far short of their production goals. To make matters worse, profitability was also suffering from poor management of Purchase Price Variance (PPV).
Teaming with AMS, Manex designed and delivered a comprehensive supply chain management program. Manex developed and deployed a five-week program, implementing reengineered processes that eliminated parts and assembly receiving problems while improving the PPV process flow with a systematic approach. With better control of parts, the manufacturing line consistently met deadlines.
With the implementation of the improved supply chain processes, AMS was able to dramatically increase profitability and improve productivity. Specific results include:
- 90% on-time delivery improvement
- 66% PPV Flow improvement
- 20% sales increase
- $500,000 inventory reduction
- $150,000 labor cost savings