Operational excellence at a key site for a marine engineering products division of a global organisation

The issue

  • An engineering, fabrication & assembly facility supplying deck machinery equipment to the marine industry, was severely underinvested in, with old facilities & equipment and remote from Group HQ
  • Seen as a failing site with internal customers losing trust in its ability to deliver
  • Disconnected planning and production functions causing late delivery and high costs
  • No effective performance management system in place to drive improvements
  • Very high inventories due to a lack of control of demand and production priorities
  • Intention to transfer products in from Scandinavia and establish a low-cost supply centre of excellence


  • Evaluation of the primary issues and development of a site transformation plan
  • Focused on OTIF as the critical performance metric; established cross-functional planning with short interval control to manage demand and delivery to promise
  • Improved data integrity, reset planning parameters and re-established ERP system use
  • Re-organised operations to improve flow through the factory and to establish schedule adherence
  • Implemented practical lean operational disciplines centred around PDCA
  • Addressed excess inventory, control of stock, kitting and warehousing operations
  • Established effective performance management across all functions
  • Coached management to develop capability and establish sustainable improvement

The results

  • Delivery performance improvement OTIF from 14% to 95% within six months
  • 45% reduction of inventories within one year
  • Jump in recovered factory revenues from effective demand management & increased delivery to commitments
  • Engaged and productive workforce with a clear understanding of what was required of them
  • Successful capital upgrade completed while continuing to supply
  • Site was established as a Centre of Excellence for deck machinery and achieved Group award for excellence
  • Asked to repeat a similar exercise at another site in the Far East

An award-winning team


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