Technical Airborne Components: less stock and more on-time deliveries

Technical Airborne Components (TAC), a manufacturing company based in Liege, develops and produces high-tech rods for the aerospace industry. The extraordinary quality standards and the complexity of the products mean that the production process flows are very complicated. Moore Stephens Strategy & Operations was happy to take on this challenge.

Expertise offered by Moore Stephens

  • Capacity Planning
  • Demand Planning
  • Lean Manufacturing
  • Agile Software Development

What the client wanted

A Technical Airborne Components (TAC) product can undergo up to 30 steps in a production process, whether through different machines or through the same one. The company turned to Moore Stephens Strategy & Operations so that they could get a better grip on the production flows. The ultimate goal here was to decrease stock levels and increase on-time deliveries.

Our approach

  1. Initially we developed a (time-based) ‘pull’ system in order to reduce stock levels and lead times. This allows for the workload in a cell to be measured in real time, and when it exceeds the ‘stock ceiling’ it can no longer be delivered.
  2. During the second phase we examined how more deliveries could be guaranteed to be on time. Because TAC employs an infinite capacity system and has little control over the waiting times between each workstation, it can be difficult to predict when a product will be ready. Moore Stephens Strategy & Operations installed a forward planning calculation tool for this purpose.

Based on the WIP and the planning schedule, a forward calculation is performed in order to work out the actual waiting times, not only providing clarity in terms of the delivery dates but also when it comes to capacity planning for the machines.

The result

  • Because lead times are cut and stock levels reduced, Moore Stephens Strategy & Operations has provided optimised working capital. And one direct result of that is that Technical Airborne Components’ cash position has improved.
  • By creating transparency when it comes to the machinery utilisation rate, both machines and labour are deployed more efficiently. This raises both the productivity and the efficiency rate in the factory.
  • The client now has a clear idea of the actual delivery date so the planner is able to make better decisions and Technical Airborne Components can guarantee on-time delivery.
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