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Industrial Footprint Expansion for Top Defence Contractor
Background
A leading Defense Contractor faced significant challenges in expanding its manufacturing footprint. They were burdened with construction disruptions, excessive costs, and development fees. These hurdles threatened the timely expansion needed to meet growing demand and operational efficiency.Key Business Issues
- Unplanned construction delays: The expansion project was plagued by delays, severely impacting production timelines.
- Excessive costs: Development fees and construction overruns led to budgetary concerns, creating further pressure on the project.
- Space constraints: The existing facility was unable to meet the forecasted capacity needs without further expansion.
Solutions
Crossover Solutions initiated a comprehensive assessment to determine a cost effective go forward plan:- Plant Six Sigma Assessments: Conducted value stream mapping and spaghetti mapping (material flow), and applied Kaizen & 5S principles to optimize the facility layout. Internal walls were removed, introducing flexible work floor areas and enabling better production flow. Demand-pull stations and supermarket stores were introduced for efficiency.
- Warehouse Reorganization: Transitioned the warehouse from project-based locations to component-specific usage, improving inventory management. The materials warehouse area was condensed, saving considerable expense and time
- Environmental Enhancements: Added skylights, painted ceilings white, and improved lighting to create a more productive and efficient workspace.
Results
The thoughtful evaluation and ultimate solutions implemented yielded substantial improvements:- The proposed plant expansion was eliminated, resulting in a multi-million cost avoidance.
- Travel distance measured (via spaghetti mapping) was reduced from 28.5 miles to 2.6 miles, drastically improving material flow efficiency.
- Additional space was made available for new production capabilities.
- Warehouse efficiency increased: Picking and put-away efficiency rose by 62%, and cycle counting and inventory accuracy improved by 20%.
- Quality levels increased by 25%, absenteeism decreased, and overall employee retention and morale improved.