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

7/31/2019 Five Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

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Five Strategies for Making

Manufacturing Pay

Louis Columbus

Cincom Systems


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Speed Is New The Platform

Are passionate about improving the accuracy andspeed of Demand Management

Managing variability in their supply chains for

competitive advantage

Reducing manufacturing costs by coordinatingDemand Management and Quality

Increasing profitability by knowing which deals to take

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


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Are passionate about improving the accuracy

and speed of Demand Management


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Strong Focus On Analytics And An Effort To Continually

Improve Permeate Highest Performing Companies


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


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Managing variability in their supply chains

using Demand Planning


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Reducing manufacturing costs by coordinating

Demand Management and Quality


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Obsessed with Quality

Energized with the vision of seeingtheir products last decades longerthan anyone predicted

Credit: NASA/JPL-Caltech)


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GKN AerospaceResults Achieved:

50 percent reduction in Total Cost of

Ownership (TCO) of enterprisesystem

$25-million reduction in inventoryinvestment in the first six months

42 percent increase in inventory turns

38 percent reduction in cycle time,improved electronic collaboration withkey customers and more.


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Increasing profits by knowing which deals to take

Manual, fragmented

processes driving

suboptimal decisions

leading to lost

opportunities

Lack of knowledgetransfer from

engineering to project

management & Sales

slows bids, estimates

and contracts to a

crawl

Lostprofitability

due to lack of

accuracy on

quotes, bids

and pricing

Lack ofproject

selection and

prioritization

based on

profitability

Input:

RFPs,Contracts

Orders

MarginsOutput:

Products

and Services

Finding Competitive Advantage

Massive

Overcommitments lead tolost sales and customersLack 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


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Input:

RFPs,Contracts

Orders

MarginsOutput:

Products

and Services

Funding Competitive Advantage

Higher

Customer

Satisfaction

Levels

leading to

greaterprofits

50%+

increase in

project

completion

rate, under

budget and

on schedule

67%reductionin quotingand order

rework

4X reduction inECNs;

consolidationof productchanges

34%increase inquoting &

pricingaccuracy

54% increase inperfect orderperformance

34% increase inSLA

performanceand 25%

reduction incompliance

costs

2X increase incontract closure

rates; 58%increase in

profitability frombetter clausemanagement

Increasing profits by knowing which deals to take


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Drive down cycle times by continually improving the Sales &

Operations Planning Process (S&OP)


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Best Practice: Making Sales & Operations Planning (S&OP)

and Demand Planning Strategic with a 3 to 5 yr. horizon


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The S&OP Process At Boeing

Sources: WSJ, Purchasing.com, AMR Research


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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 coordinatingDemand Management and Quality


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


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Thank You


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2012 Cincom Systems, Inc.

All Rights Reserved

Developed in the U.S.A.

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All other trademarks belong to their respective companies.

For more information visit:

http://erp.cincom.com/

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

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