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Factory Optimization

Insight

May 02, 2024

Recent Client Engagement

Patriot recently engaged in a factory optimization with a private equity group portfolio company in the forging segment. The engagement included on-site collaboration with management and functional leadership teams to assess key opportunities for improvement within the company. Objectives for this project included:  

  • Conduct value stream mapping event with bottleneck analysis to identify constraints and throughput improvement opportunities 

  • Devise quality standard work to optimize processes and eliminate compliance risks 

  • Assess and revamp the rework process and MRB controls to reduce unplanned work 

  • Curate a robust up front contract review and flow down process to strengthen operational efficiency

  • Redesign use of ERP system and outside processing to achieve greater efficiency and truncate the cash flow cycle

  • Analyze business and shop scheduling forecast to determine key opportunities to slash high lead times and boost future growth  

  • Develop a comprehensive roadmap to improve OSP process and implement supplier-specific activities for improved throughput and OSP scheduling 

With the client, the Patriot team conducted shop walkthroughs, leadership team interviews, and a comprehensive value stream mapping event. From this process, the client received an actionable roadmap to increase revenue, improve EBITDA, and enable free cash flow. 

Factory Optimization Process 

In the pursuit of positive EBITDA performance and cash flow results, Patriot develops tailored business enhancement strategies that are adaptable to each client's circumstances. These plans are divided into three phased improvement projects, each of which is comprised of specific initiatives aligned with the available timelines and resources of the client.

Factory Optimization Phase 1 

A short-term data mining and analysis process. Utilizing tools such as Gemba walks, bottleneck and constraints analysis, value stream mapping, and financial assessment the team devises factory flow enhancements, performance review protocols, and an actionable plan focused on short term, low capital expenditure requirements.

Factory Optimization Phase 2 

A mid-term improvement plan that builds upon phase 1 initiatives and extends into product line transfers, more in-depth process improvements, and commercial improvements. Additionally, in this phase of factory optimization, the team evaluates current-state scheduling, processing, and mapping practices to enhance SIOP management and quality improvements. 

Factory Optimization Phase 3 

A long term, transformative improvement plan building off each of the two previous phases. This phase emphasizes industrial footprint optimization, site synergy realignment, and new contracts to optimize and grow the business. 

Next Steps 

 

If the factory optimization process outlined above matches your current needs in this ever-evolving aerospace and defense landscape, please contact us for future engagement opportunities.

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