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Improved sales and operations planning reduced backlog by 50%

A specialty steel producer with operations in Sweden and sales globally, faced an upturn in market demand leading to order intake above capacity, which in turn created an order backlog, all-time lows in delivery precision, and frustrated customers

The client needed to rapidly take control of order intake and increase delivery precision and plant capacity. OPX Partners conducted an initial diagnosis through interviews and analyses of order and production data. The analysis resulted in three key initiatives:

  • S&OP: Developing and participating in the first cycle of a new sales and operations planning process to balance order intake, production capacity, and backlog reduction

  • Daily planning: Developing and training planners in a new process, designed to minimize Work In Progress build-up

  • Bottlenecks: Preparing and participating in several full-day workshops to raise Overall Equipment Effectiveness (OEE) in main bottlenecks in order to improve output. This resulted in well-defined plans and concrete actions, some of which were carried out during the workshops

The project resulted in a back-log reduction of 50%, after six months, and an output increase in main bottlenecks of 40%, after three months.

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