Operations Excellence for Manufacturers and Distributors
Operations Excellence (OpEx) drives improvements in your plant in production, quality, uptime, delivery and cost. We utilize a suite of Lean tools to make waste visible and eliminate it with root cause analysis and corrective actions.
25% Increase in Plant Output Yields +50% Net Income
Productivity (P): Move from 60% to 85%
Quality (Q): Scrap and rework reduced from 10% to 3%
Uptime (U): Increase from 60% to 85%
OEE = P * Q * U
We can typically increase OEE 25% in less than 6 months
If net Income is already 10% of sales and net income moves to 15% of sales, it's a 50% increase in net income.
Operations Excellence Services
Financial Assessment and Action Plan
Estimated durations. Actual time varies due to complexity, size & information available.
Review Financial Documents
1 week
- Review series of income statements
- Compile performance reports
- Understand variable and fixed costs and how net income is impacted
- Pareto largest costs and develop action plans
- Calculate SDE or EBITDA
Market Value Assessment
Estimated durations. Actual time varies due to complexity, size & information available.
Fulcrum123 Proprietary Market Value Assessment Tool
2 weeks
- Meet with your team understanding your current business
- Estimate current market value
- Build a plan to increase your market potential
Optimize the Business
Estimated durations. Actual time varies due to complexity, size & information available.
Gather and Report Data for Baseline and Decisions
2 weeks
- Hour-By-Hour boards at equipment
- Plant Dashboard for production and all functionals
- Scorecard for plant owner(s)
- Train operators, plant leadership and owners
Increase Production, Quality and Uptime (OEE)
4 weeks
Utilize industry-leading Lean tools:
- Staffing equipment
- Increase productivity
- Reduce change-over time
- Cut scrap / rework
- Improve uptime
- Address delivery and lead time issues
Optimize Inventory
2 weeks
- Days on Hand analysis
- RM
- WIP
- FG
- MRO
- Remove excess & obsolete
- Optimize safety stock, reorder points and order quantities
Problem-Solving and Root Cause Analysis
2 weeks
Train plant teams (including functional and office) in 5-Y, containment and corrective action
Planned Check-Ups
Most check-ups can be done in 2-3 days
30 Day Check-Up
1 week
- Review Financials
- Plant Tour
- Review dashboards and scorecards
- Managment interviews
- Recommended actions to stay on course
90 Day Check-Up
1 Week
- Review Financials
- Plant Tour
- Review dashboards and scorecards
- Managment interviews
- Recommended actions to stay on course
180 Day Check Up
1 week
- Review Financials
- Plant Tour
- Review dashboards and scorecards
- Managment interviews
- Recommended actions to stay on course
- Wrap-up with plant ownership
Check-Ups are the "rear view mirror"for accountability.
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