The Energy industry is getting more and more price competitive. Our competitors are under cutting prices to win the business. We have defined a key KPI in the market that enables us to keep prices on a somewhat higher level, if this KPI is at an outstanding level. The KPI is Lead time from order to delivery. A major part of that lead time is design and release to manufacturing
The Lead time for Design request to delivery of product is too long averaging 38 days. We have lost business as a result.
My Team was set with the task of a reduction of lead time from incoming design request, to product release for manufacturing.
The target was set to a Lead Time of 10 days
We used a universal cross functioning team of internal stakeholders from Sales, Customer Service, Design, Quality and Production.
We used the PDCA approach with an internal Practitioner Certified led facilitator, to ensure sustainability and expanded the process on an international level.
We created a Process map to understand the current state and identified the losses. The Team was trained in flow and design to deliver methodologies. We developed a future state map and identified 8 projects that would take us to our target. All projects were successfully executed using Practitioner Certified support, with all project KPIs met.
The results were Lead time reduced from 38 days to 3 days
We secured mew business as a direct consequence with annual revenue of $850,000