The situation
Nobody had noticed because nobody was looking at the data against the prior economic model.
500 employees, 24/7, 19 nationalities. A prior CI initiative had replaced economic run quantity discipline with make-to-order, breaking the sequencing wheel and collapsing cost absorption.
Red
Machining profitability status on arrival
The outcome
Red → Black
Department and machine absorption
90 days
Record low to record high engagement
How it happened
- Mined SAP data to reconstruct the pre-CI operational baseline and identify root cause
- Sequencing-wheel break identified as the cause of absorption collapse; returned to economic run quantity discipline
- Machining moved from red to full cost absorption virtually overnight
- 50% reduction in scrap and rework across the value stream
- Beat the Boss Challenge deployed; workforce engagement reached record-high scores within 90 days
- SAP data mining
- Economic run quantity
- Sequencing wheel
- Workforce engagement