Overcoming Supplier Productivity Challenges to Meet OEM Demands: An MS Companies Case Study

INTRODUCTION

MS Companies, a leading provider of Advisory Services, was approached by a major Original Equipment Manufacturer (OEM) facing significant manufacturing challenges from one of their Mexico-based suppliers. The primary goal of this project was to enhance the supplier's productivity to meet the OEM's future demands. This case study details the comprehensive approach adopted by MS Companies, highlighting the strategies implemented and the results achieved within a short timeframe.

CHALLENGES

To achieve the objective of enhancing the supplier's productivity and securing the OEM's future demands, the project needed to overcome several significant obstacles:

1. Inefficient Production Line Layout: The assembly line layout required optimization to boost output and meet the peak volumes demanded by the OEM. The existing layout was insufficient to handle the increased production needs, causing inefficiencies.
2. Material Shortages & Logistic Disruptions: Logistic disruptions due to material shortages were a pressing issue. These shortages disrupted the production flow, leading to delays and increased operational costs.
3. Quality Issues: There were quality concerns, particularly with an increasing volume of scrap from a variety of defects.
4. Communication Gaps: There was a noticeable lack of regular communication and collaboration among team members and departments. This lack of coordination was impacting overall efficiency and the ability to respond quickly to issues as they arose.

SOLUTIONS

To address these challenges, MS Companies implemented a comprehensive strategy focused on improving communication, logistics management, quality control, process optimization, and automation.

1. Improved Communication: Daily meetings were established involving all relevant team members to ensure alignment and expedite decision-making. A communication matrix was introduced to enhance coordination and address the communication gaps identified.
2. Logistics Management: A new Logistics Manager was appointed to address material shortages and prioritize production planning effectively. Materials flow analysis was used to streamline the logistics processes and mitigate disruptions caused by shortages.
3. Quality Control: Quality concerns were tackled through PDCA (Plan-Do-Check-Act) cycles, which minimized scrap and rework. QRQC (Quick Response Quality Control) meetings increased participation and efficiency in addressing quality issues promptly.
4. Process Optimization: A process map analysis led to the optimization of the assembly line layout, transitioning from a standard layout to a U-shape to enhance flow and efficiency. Process mapping helped in visualizing and improving the workflow.
5. Automation: New robotic systems were implemented for tasks such as plasma and glue application and lens bonding, increasing precision, speeding up production, and reducing manual labor and errors.

RESULTS

The optimization efforts led to significant improvements. Bottlenecks were identified and eliminated, allowing for smoother production flow. QRQC meetings saw increased participation and prompt resolution of issues, fostering a more collaborative environment.

Each OEE element was analyzed individually, resulting in a 20% improvement that secured the OEM's future demand. Within two weeks, the team increased throughput to a level acceptable to the OEM, successfully removing the supplier from escalation status. This rapid turnaround highlighted the effectiveness of improved communication, logistics management, automation, and overall productivity.

WHY PARTNER WITH MS COMPANIES?

With a proven track record of delivering tangible results within short timeframes, MS Companies brings expertise in workforce solutions, logistics management, quality control, and process optimization. By fostering collaboration, implementing innovative strategies such as PDCA cycles and robotic automation, and prioritizing effective communication, MS Companies ensures not only immediate improvements but also sustainable long-term success. Through a commitment to excellence and a comprehensive approach tailored to each client's needs, MS Companies stands as a reliable partner dedicated to enhancing efficiency, quality, and profitability in manufacturing operations.

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