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Case Study - Military Diesel Engine Driven Fuel Pump |
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 A Multi-Million dollar International Manufacturer had an enviable challenge.They had a large backlog and their capacity was maximized. They needed to gain floor space to increase their production and to reduce workload from their production and administrative staff to handle the additional work from the planned increase in production. They chose to outsource two products they felt did not fit as well with their expertise. |
- Free up Floor Space
- Free up Production and Administrative Resources
- Outsource without increasing material costs
- Receive Products on time
- Maintain Product Quality
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- The project manager at KP communicated very closely, sometimes daily, with the International Manufacturer. KP delivered finished products Just in Time to minimize floor space consumption at the International Manufacturer.
- Developed assembly operations with quality assurance steps built into the processes to assure that the finished products met all quality requirements.
- Designed work areas to minimize parts travel.
- Replaced suppliers located at great distances with high quality suppliers located closer to our plant to reduce transportation costs.
- Replaced consistently poorly performing suppliers.
- Negotiated vendor pricing reductions
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- $4,000 monthly savings in material costs
- Decreased inventory levels at the International Manufacturer
- Reduced Logistics/Planning/Administrative work load
- Planning, ordering, vendor management, receiving, inventory management, and accounts payable work load for all material needed to assemble the two products was replaced with, one PO for the finished products and one invoice.
- Production labor freed up for additional production
- Improved Product Quality
- Finished products delivered on time, Freeing up floor space for additional production
- Allowed streamlining of production schedule
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