$40B Global Electronics Co.
Business Case
Results
Summary
New competitive technology products eroding margins
High costs and long lead-times resulting in market share losses
Flexible Lean manufacturing system design and implementation
Lean JIT logistics network design & implementation
Lean JIT logistics network design & implementation
| Metric | Before | After |
|---|---|---|
| Replenishment lead-time | 25 days | 7 days (-72%) |
| Inventory | $80 M | $40 M (-50%) |
| On-time delivery | 83% | 94% (+13%) |
| Demand fluctuation | 1.0 (Index) | 0.6 (-40%) |
$100 million cash freed up in two years
Used to acquire one of their largest competitors
Won global parent company competition for best business unit world-wide