5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

18
Five Strategies for Making Manufacturing Pay Louis Columbus Cincom Systems

description

Check out the slides from the webinar, "Making Manufacturing Pay." This webinar reveals how manufacturers can become competitive again by simplifying complexity and: Improving response to market demand Better managing variability in the supply chain Reducing manufacturing costs Increasing profitability Improving competitive advantage View the webinar on-demand: http://forms.cincom.com/CMUS1204050 Presented by Louis Columbus @LouisColumbus

Transcript of 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Page 1: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Five Strategies for Making Manufacturing Pay

Louis Columbus Cincom Systems

Page 2: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Speed Is New The Platform

Are passionate about improving the accuracy and speed of Demand Management

Managing variability in their supply chains for competitive advantage

Reducing manufacturing costs by coordinating Demand Management and Quality

Increasing profitability by knowing which deals to take

Drive down cycle times by continually improving the Sales & Operations Planning Process (S&OP)

Page 3: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Are passionate about improving the accuracy and speed of Demand Management

Page 4: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Strong Focus On Analytics And An Effort To Continually Improve Permeate Highest Performing Companies

Page 5: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Dashboards: Less is more (6 metrics total, all measuring collaboration)

Page 6: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Managing variability in their supply chains using Demand Planning

Page 7: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Reducing manufacturing costs by coordinating Demand Management and Quality

Page 8: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Obsessed with Quality

Energized with the vision of seeing their products last decades longer than anyone predicted

Credit: NASA/JPL-Caltech)

Page 9: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

GKN AerospaceResults Achieved:

• 50 percent reduction in Total Cost of Ownership (TCO) of enterprise system

• $25-million reduction in inventory investment in the first six months

• 42 percent increase in inventory turns

• 38 percent reduction in cycle time, improved electronic collaboration with key customers and more.

Page 10: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Increasing profitability by knowing which deals to take

Page 11: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Increasing profits by knowing which deals to take

Manual, fragmented processes driving suboptimal decisions leading to lost opportunities

Lack of knowledge transfer from engineering to project management & Sales slows bids, estimates and contracts to a crawl

Lost profitability

due to lack of accuracy on quotes, bids and pricing

Lack of project selection and prioritization

based on profitability

Input:RFPs,

Contracts Orders

MarginsOutput: Products and Services

Finding Competitive Advantage

Massive Overcommitments lead to lost sales and customers Lack of agility

and flexibility in responding to change orders and ECNs in a

timely manner

Inconsistent & conflicting SLA performance &

compliance

Massive time drains due to

chaotic bidding, estimating and contract mgmt.

llifecycle

Page 12: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Input:RFPs,

Contracts Orders

MarginsOutput: Products and Services

Funding Competitive Advantage

Higher Customer

Satisfaction Levels

leading to greater profits

50%+ increase in

project completion rate, under budget and

on schedule

67% reduction in quoting and order

rework

4X reduction in ECNs;

consolidation of product changes

34% increase in quoting &

pricing accuracy

54% increase in perfect order performance

34% increase in SLA

performance and 25%

reduction in compliance

costs

2X increase in contract closure

rates; 58% increase in

profitability from better clause management

Increasing profits by knowing which deals to take

Page 13: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Drive down cycle times by continually improving the Sales & Operations Planning Process (S&OP)

Page 14: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Best Practice: Making Sales & Operations Planning (S&OP) and Demand Planning Strategic with a 3 to 5 yr. horizon

Page 15: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

The S&OP Process At Boeing

Sources: WSJ, Purchasing.com, AMR Research

Page 16: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Launch Sequence Making Manufacturing Pay Are passionate about improving the accuracy and speed of Demand Management

Managing variability in their supply chains for competitive advantage

Reducing manufacturing costs by coordinating Demand Management and Quality

Increasing profitability by knowing which deals to take

Drive down cycle times by continually improving the Sales & Operations Planning Process (S&OP)

Page 17: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

Thank You

Page 18: 5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

2012 Cincom Systems, Inc. All Rights Reserved

Developed in the U.S.A.

CINCOM, the Quadrant Logo, and Simplification Through Innovation are registered trademarks of Cincom Systems, Inc.

All other trademarks belong to their respective companies.

For more information visit: http://erp.cincom.com/

[email protected]