A large manufacturer of powerboats

Background

A prestigious Boating Company in New England with manufacturing sites in two other locations. They are a quality leader with an outstanding reputation.

The Problem

In the 1980’s the industry was struggling to meet demand through increased capacity, while in the early 1990’s the industry was struggling to survive after the luxury taxes were enacted in the late 1980’s. Our project began in 1991 the Client was buried in excess inventory and staffing while sales dropped dramatically up to 40%.

Scope and Assignment

We focused our efforts on improving Bill of Materials (BOM’s), as well as improving scheduling methodology (external supply chain as well as internal between departments) to assure that the proper material was available at the proper time. Material shortages and poor planning resulted in much rework and many quality issues that adversely effected productivity levels. The installation of a management operating system which synchronized material and labor flow was developed and installed which added predictability and dramatically reduced costs to the operations.

The Results

What the Client wanted was a reduction in Raw Materials and Work in Process (WIP), and improvement in On Time Delivery with a reduction in labor costs. The project resulted in a four to one return on investment, an Inventory reduction of 30%, and on time delivery improvement of over 25%.

This successful project enhanced our reputation in the marine industry and in the 1990’s we became one of the consultants of choice completing assignments for ten other marine companies.

Synergetics Installations Worldwide, Inc.

75 Congress Street, Suite 201 • Franklin Block Building • Portsmouth, New Hampshire 03801 • (603) 433-8940