Manufacturing technology provider

Improving throughput

Background

The company is a provider of repair and maintenance services of electrical equipment.
They offer aftermarket lifecycle care solutoins for electronic equipment to the electronics, computer, telecommunications, medical care, IoT and other industries. Total revenue equals €230M.
The company is headquartered in the US, but has two (of 10) major production facilities in Europe, Hungary and Poland (generating 63% of revenue).
After a plant-tour of both the HUN and POL sites, we agreed to get started in Hungary to demonstrate the impact we could make in the business; key focus of our efforts was to improve productivity and efficiency; one key Business Unit was chosen as a pilot.

Business Relationship

The company was acquired by Private Equity in June 2019, which in essence was the logistics and product service business of a conglomerate (‘orphan asset’).
With the formation of the company, the PE firm announced a new CEO (former COO of iQor). Being a Lean Six Sigma Black Belt, the CEO was looking for heavy-weight Operations Excellence support from us.
JENTS International initiated & conducted this opportunity in collaboration with a US-based partner, who had a past relationship with the New York-based Private Equity firm.

Approach

Conducted a two-week analysis to understand potential improvements in the selected BU, with a focus on Operational Excellence.
- Recommended to separate NPI from mature PIDs
- Advised to reduce shopfloor WIP significantly
Followed the two-week assessment with a three-week initial implementation to demonstrate first results.
- Commenced detailed sub-component analysis plus development & installation of NPI Cookbooks (in Hungarian) plus reduced shopfloor WIP
Consequently, the implementation efforts were extended into a full BU roll-out.
While conducting the roll-out, we were asked to have our team take-up the Global Transformation Office role.

Results

Realised a 69% debug time compression for Switch Product A and 47% debug time compression for Switch Product B as a result of Cookbook implementation in first 4 weeks.
Reduced shopfloor WIP by 22% (from 13,700 to 10,639) in first 4 weeks.
Transitioned 12 BU testers (FTE) to another BU.
Overtime reduced to zero (from avg. $17K per month).

JENTS International

JENTS International is an advisory company specialized in identifying and realising operational performance improvements at accelerated pace for Private Equity and (Portfolio) Companies.

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