Okay, I have been handed the reigns of a department
that sales plumetted from 3.2M to >1M in a year, Two engineering,
two assembly, two managing, and one clerical resources dropped
to One managing and 1/3 of a clerical resource. Quote backlog
had grown to over three months, (due to the requirement of all
quotations going through the engineering department) lead times
had tripled, and the hit rate had dropped to an all time low of
>7%.
By monopolizing our clerical resource, working long hours, and
pulling the quotations out of engineering the quote backlog had
dropped to less than a week a month later. Whithin three months
I met my personal goal of three days.
Taking the quotations out of engineering freed up enough time
in that department to drop the project engineering lead time by
more than a week. Adding my quotation research to the engineering
project also gave them more time to actually engineer the custom
components reducing the actual engineering time. Putting pressure
via deadlines reduced it even more.
From: 90 days quote turnaround + 3 weeks engineering + 7 weeks
purchasing + 2 weeks assembly + 3 days ship time = >6 month
delivery.
Dropped to one week quote turnaround + 2 weeks engineering +
7 weeks purchasing + 2 weeks assembly + 3 days ship time = about
a 50% decrease in turnaround time. Just by taking the quotation
load off engineering and shouldering it myself!
The next area to concentrate on was purchasing. Since I was in
purchasing before, and my turnaround from MRP to order was under
3 days and I insisted on a four week or less turnaround from my
vendors I tasked purchasing with similar dates. I used weekly
meetings to keep the pressure on purchasing for faster deliveries.
The Purchasing response under Sandy Freed was very good. Average
procurement time was cut by two weeks.
With the drop in new machine sales following the 9-11 attacks
(and our lengthened lead times) the assembly floor had an abundance
or resources. This opportunity shortened turn around for assembly
and shipping.
The six month results ended up with averages of quote turnaround
3 days + engineering time >2 weeks + procurement time >5
weeks + assembly 2 days + shipping 1 day. total average customer
service went from over 6 months lead time to less than two months!!!!!
The resulting increase of orders and profits helped our company
weather the two hard years following the 9-11 incident. Sales
increased to <3M with an average profit margin over 40%. Hit
ratio had increased to about 30% and six to eight week turnarounds
where the norm.
Another reorganization and management change resulting in my
assistant resigning. Now a one man operation, I was responsible
for not only the sales, marketing, and project management portions
of my "group" but now had to take care of all the paperwork
and meetings that I didn't have time for. Add in the a management
with a low service priority, rumours of going down, and the fact
that we were again on the market to be sold and there is no doubt
that sales again started to drop.
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