CGT is a manufacturer of vinyl for automotive and industrial applications, employing about 1,000, with annual sales of $330 million. They have recently grown through acquisition of the PVC business and facilities from General Polymers and Uniroyal Chemicals. SatiStar’s activities included re-engineering the overall Order Fulfillment process resulting in:
- 14M$ inventory reduction (78% reduction)
- As a result of re-designing and implementing the new Scheduling processes, the overall order fulfillment process cycle time was reduced from 43 days to 14 days (allowing for a further working capital reduction of roughly 20M$)
- Identification and implementation of 93 opportunities for significant improvement in order fulfillment
- Headcount reduction in manufacturing and support processes of roughly 5%
- Overhauled the organizational chart and re-aligned the reporting relationships to the new business processes
- Re-engineered the plant Maintenance processes in order to increase overall plant efficiency
- Separated Maintenance into three sub-processes:
- Repair plant and equipment process
- Improve plant and equipment process
- Prevent breakdowns process
- Identified significant reduction in Mean time to repair (MTTR) of roughly 35%
- Identified significant increase in Mean time between failures (MTBF)
- Assisted in creation of the corporate Total Quality Improvement plan
“This projected cycle time reduction of over 80% annual cost savings amounting to over 3% of sales, one-time savings of roughly $10 million, and working capital reduction of roughly $30 million really have us excited!” –Jim Chaplin, Chairman
