When PULL Replaces PUSH: Proven Results
The results summarized below are from clients I have helped go from PUSH to PULL. While these projects varied greatly in scope and product, each of them were completed in about 3 months and delivered near-immediate results. The Military organization used a forecast every 4-6 months to determine min/max inventory levels. The other two companies used a monthly forecast process. The cut & sew company had made significant investments in the prior 5 years to improve forecast accuracy.
Cut and Sew Products from Asia Suppliers
- 50% reduction in manufacturing lead-times
- 40% percent reduction in total inventory at wholesaler and manufacturing
- $400K per year expense reduction
- 30% increase in capacity
- Significantly less effort to manage
PVC Building Products for Regional Wholesalers and Big Box Retailers
- 100% on-time delivery up from 85%
- 10% reduction in inventory
- 50% reduction in manufacturing lead-times
- Eliminated expedites
- Eliminated overtime (skilled workers were quitting due to constant forced overtime)
- Substantial increase in net profit
Military Helicopter Repair and Overhaul
- 50-80% reduction in repair and overhaul lead-times
- Less inventory
- Eliminated overtime
- Expedites reduced from 40-50 % to less than 10%
- Follow up Lean projects where highly focused to continue improvements