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THE COMPANY

A UK Technology company with marketing design and manufacturing capability, wholly owned by American and Japanese joint venture.

THE CHALLENGE

The cost base, although already high, was showing signs of escalating still further whilst other companies, operating in the same market, had started to reduce the technology gap. The business was beginning to experience a potentially difficult problem. Firstly, a need to get its new products to market quicker and secondly the need to gain control of, and reduce, the escalating cost base. The Engineering Change Process was identified as a major contributor to escalating cost and a block to the timely introduction of new products.

THE STRATEGY

Our first move was to put together a process improvement team, cross functional in nature and to take them through a two day course on process analysis and creative thinking techniques. The team then, devoting half a day a week to the programme, set about mapping and analysing the current process and designing and implementing an improved process.

THE BENEFITS

The exercise was completed in four months the benefits took longer to come through. After 6 months:

The cost of a change dropped from £750 to £400.
The average time to implement fell from 15 months to 6 months.
The number of changes in the system fell from 2086 to less than 500.
The monthly closeout rate up 9 to 15 each month.
The team members grew in stature and capability as a result of the experience.

QUOTES FROM THE MANAGEMENT

"When your business relies on technology to maintain its competitive edge the engineering change system becomes one of the key business processes…Our old ECN process seemed to prevent us introducing change the new one clearly helps us."

Manufacturing Engineering Manager

 

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Last modified: October 16, 2000