Client Case Study - Merger

Background

As a result of a merger, our client consolidated multiple circuit card assembly board manufacturing into a single location and created a corporate “Center of Excellence” (COE) for Circuit Card Assembly. The Center of Excellence was charted to provide build to print assembly of circuit cards for the corporation, which included over 50 defense programs located in 5 geographic locations in the US. The corporation invested $60M to create the COE and employed approximately 800 people.

The COE was struggling to keep their customers satisfied primarily driven by poor schedule performance, costs overruns and quality issues found during test. The corporation was reconsidering their decision as a result of the poor performance.

Business challenge

Our challenge was to develop and implement a lean 6-Sigma solution that enabled a continuous supply of product to their customers within budget with a higher level of quality. Ultimately changing the perception of the COE to a highly competitive strategic advantage for the company.

Solution

  • Developed an overall operating strategy integrating customer needs and current capabilities.
  • Dramatically reduce cycle time from customer order to delivery.
  • Implemented continuous flow of product based on customer demand.
  • Upgraded product verification and integrated customer testing at a lower level. Implemented Quality corrective action program.
  • Develop a balanced set of metrics to drive the strategy and highlight gaps.
  • Focused on team effectiveness through training, talent upgrade, team based management and organization structure.

Results

  • The COE experienced significant improvement in all operating measures.
    • Schedule position improved from below 70% on commitments to over 97%
    • Productivity increased by 40% within the Cells
    • Quality performance improved by 90% on customer escapes.
  • The COE under ran budgets and returned over $15 M to their customers.
  • Overall program performance went from “very poor” (15 Red out of 50 total) to “excellent” (0 red out of 50 total)