Pinnacle Strategies Uses Existing SAP Functionality to Help Airplane Manufacturer Increases Inventory Turns 250%

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Pinnacle Strategies implemented a comprehensive production management solution based on demand-pull principles and integrated it with the existing SAP ERP system.

Elegant Solutions for Complex Problems

Pinnacle Strategies announced that one of their clients, a worldwide manufacturer of commercial and military airplane assemblies and components, has increased inventory turns by 250%, reduced overtime spending by more than $2.8 million annually, improved internal fill rates, and dropped past due orders by 93%.

Pinnacle Strategies’ challenges were to help their client increase fill rates and help ensure service deadlines were met, all while reducing the ever ballooning overtime costs.

Pinnacle rapidly delivered the required results by helping the client to:
-Reduce shortages by replenishing component supplies based on actual consumption (“Demand-Pull Replenishment”) using existing SAP functionality
-Cut production lead times
-Provide management and execution with a clear set of execution priorities across the organization integrated with SAP data
-Increase throughput using Rapid Analysis Bottleneck Improvement Teams (RABIT™)
-Manage the process with an objective performance management system residing along with the SAP database

Within just three months, the fill rate increased to over 95 percent, and over time, reached 99 percent. Inventory turns rapidly increased to 250 percent by completion. As productivity improved, overtime was minimized, saving the client more than $2.8 million annually, even as past due orders fell by over 93 percent. All results were delivered with the client’s existing SAP ERP system, requiring only a new way of using the information.

Additionally, a spring tornado took down major portions of the operation, which halted production. But by this time, Pinnacle Strategies’ Demand Pull system was in place, and allowed the client to completely recover from facility damage and two-weeks of lost production time in less than thirty days without missing a delivery.

Read more about what Demand-Pull can do for your supply chain here [http://pinnacle-strategies.com/demand-pull-supply-chain.html . Read this Pinnacle Strategies customer case study, and many others, here [http://pinnacle-strategies.com/success-stories.html .

About Pinnacle Strategies

Pinnacle Strategies is an international management consulting firm focused on operations management excellence. We work with organizations to increase shareholder value by developing high-performance business processes that significantly enhance productivity, reduce costs and time to market, improving profitability and accelerating sustainable growth. Pinnacle Strategies offers results-driven consulting solutions in the areas of performance management, project management, operations management, and supply chain.

For more information, contact Pinnacle Strategies at info(at)pinnacle-strategies.com, or +1 972-492-7951.

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Jennifer Thompson
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