Customer's Issues

Due to the long storage period, the stocks got rusty and deteriorated, resulting in poor quality.

Point of Improvement

In each product category, we analyzed the frequency of customer orders and delivery time comparison with our competitors, and then classified the production type into three categories, which are, made-to-stock, half-made-to-stock, and build-to-order. Afterwards, we made the upper stream production based on a smaller lot, and synchronized every work process altogether.

Benefits

Manufacturing lead-time was reduced by 35%, and 40% of intermediate stock was slashed. Additional work is now required in the upper stream, however, we were able to reduce the overall cost because of less man-hour spent on stock transport and scraping rust off, as well as reduced rust preventative materials.