TOCICO

This presentation is based on a DBR implementation inside a factory. The aim of the project was to synchronize flow between suppliers and the machining area. During the current reality tree (CRT) analysis, we shared that the productivity syndrome of large batch sizes was the key UDE driven by the cost per unit thinking. We decided to apply the 5 focusing steps in order to improve the flow of parts to products. Very quickly, we increased the flow parts to delivered products helping the final assembly to increase the throughput of the system. We moved very quickly from 16M$ to 4M$. The main difficulty we faced during the implementation was the idle resources. One of the first actions we did was to give up all the previous key performance indicator (KPI) boards in order to focus the team on the global throughput (T) and not the local measures. Then we tried to transform this negative branch into an opportunity to increase our ROI. That's why, instead of outsourcing part numbers because of the cost per unit comparison, we decided to do massive insourcing in order to use the idle capacity we generated. Consequently the ROI almost tripled in few months because of the increase of the T, reduction of operating expenses, and the reduction of Inventory. However, the overcapacity was so high that we had to decide to explore other opportunities to increase the ROI. In order to do that, we decided to explore new supply chain solutions which were more related to project management implementation.