Production Optimization

MOTIVATION

The leading Czech manufacturer of luminaires was plagued by long delivery times and inefficient production planning for the 25,000 products that Modus would produce in a week.

identified various sources of waste in production

increase information support

SOLUTION

During a process analysis, we identified various sources of waste in production. We found the most opportunities for improvement in production planning and scheduling and related inventory management in the warehouse. In its original state, Modus operated with a lead time of approximately three weeks from order receipt to handover of the finished product to the customer. The key to rapidly reducing production operations was to increase information support, reduce the number of production stages and identify suitable semi-finished products to hold in stock. As a result, we were able to reduce the number of production blanks from the original nearly 6,000 variants to just 1,700.

CONCLUSION

We designed an optimal solution to plan and schedule production efficiently. This has reduced the number of production phases and the number of semi-finished products by 70%. All this led to a reduction in lead times.