Aviation Satellite Supplier
Operational Diagnostics Case Study
Anonymous Tier 1 Satellite Supplier
PROBLEM
– Advances in technology is forcing industry commoditization driving downward prices and increasing global competition
– Company struggling to determine new business opportunity and direction given current cost structure
– Company consistently drove down sourced components costs but still struggled to see and improve internal operations to consistently compete on a global scale
SOLUTION
- Standardized Leadership Gemba walks to witness real barriers and constraints
- System redesign from manufacturing to design & engineering
- Performance visibility and accountability
RESULTS
- Company’s ability to see opportunity tripled growth through competitive pricing while increasing margin
- Direct labor hours per unit decreased from 8000 to 4000
- # Satellites per year on order increased from ~3 to ~ 10 with zero to low capital investment