Transforming a plant with Theory of Constraints in production to improve the OTD, and Critical Chain for the new projects

Context


The SAFRAN ELECTRONICS & DEFENSE site in Mantes-La-Ville produces equipment for the aeronautical industry. During our first intervention, the site was unable to give reliable visibility on deliveries to program managers and customers. Inventories had grown sharply over the past few years, the scrap rate was high, and management was concerned about the very short term. All the staff had complete confidence in the ERP to manage production.

Approach

  • Drastic reduction in workshop work in progress with the application of the "2 for 1" rule (see the specific video on the subject)
  • Identification of the bottleneck and improvement of its performance notably by improving the versatility on the bottleneck, by eliminating multiple emergency systems, by changing the parameters of the ERP ...
  • Batch sizes have been halved and SMEDs have been performed to speed up the flow
  • Deployment of the Critical Chain in the methods and industrialization department (5 to 10 projects per year, around 50 people)
  • A project to simplify production flows by creating production lines according to the various types of products has led to a new location of the machine shop. Critical Chain was used to manage this project. The first project duration estimates were 8 weeks, but in order not to penalize production by too much machine downtime, the management allocated the 2-week end-of-year vacation for the move.

Results obtained

  • Work in progress decreased by over 60%, and lead time went from 9 months to 2.5 months.

  • Bottleneck productivity has been increased by almost 45%

  • The factory's OTD in terms of customer delivery rose from 50% to over 75% and this result has been maintained over time for more than 6 months

  • The implementation of the Critical Chain made it possible to show the excess capacity of the methods department, which was able to accept new projects without the need for additional resources

  • The application of the critical chain on the project of production flows simplification enabled the identification of the required conditions for the project success, meaning to meet the ambitious two-week deadline

 
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About Marris Consulting

Marris Consulting is an industry consulting and training company specialized in the Theory of Constraints (ToC) and Critical Chain Project Management. We focus on improving the performance of manufacturing and process industries by using Constraints Management combined with Lean and Six Sigma. To boost project performance, we also use Critical Chain Project Management (CCPM), which we sometimes combine with Lean Engineering. Our 2-day performance audits, our performance consulting services and our project management, Lean & ToC training by our industry consultants offer a wide range of solutions to help our clients around the world reach the highest possible levels of performance.

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