Inventory Reduction & Lean Roadmap
TriVista conducted an Operational Diagnostic to help a leading Aerospace Structures Manufacturer achieve $4.0 m in EBITDA savings through Lean manufacturing.
The Business Challenge
A $250 million machined aerospace structures company with seven global production facilities serving both military and commercial aerospace markets had made multiple acquisitions each year for several years and had significant discrepancies in operational performance from factory to factory (7 total). Many of the acquisitions had been long time family run businesses that had limited operational best practice implementation or adaption. As a result, several of the facilities were operating at sub-optimal performance level. The holding company turned to TriVista, leveraging our expert team to identify manufacturing and inventory opportunities within two production facilities representing approximately $140 million in sales. A key deliverable was to determine why these two facilities, despite exceeding growth expectations on topline revenue, were lagging on margin, EBITDA and cash flow performance compared to the remaining five sites.
How TriVista Helped
TriVista’s team of experts applied Lean Six Sigma methodologies to evaluate the operational performance of the 2 production facilities. Utilizing tools such as Pareto Charts, DMAIC Principals (Define, Measure, Analyze, Improve, and Control) and extensive employee interviews, TriVista developed detailed value stream maps and spaghetti diagrams to paint an exact picture of the current state of the operation. Once this baseline understanding of current performance had been established, TriVista teams proceeded with an in depth diagnostic evaluation focused on:
• Sales & Operations Planning
• Inventory Management
• Inventory Analysis
• Operational Performance
Upon completion of the analysis, TriVista presented the findings to the COO and Business Unit General Manager with detailed suggestions on improvement opportunities and a clear roadmap for implementation.
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