CHALLENGE

A public airline needed an efficient warehouse design for its Marietta, Georgia spare parts facility to ensure critical airplane components were shipped within 24 hours, preventing costly flight delays. ETONIEN was tasked with redesigning the spare parts process flow, improving service levels, reducing inventory, and enhancing productivity. By leveraging Value Stream Mapping and Toyota’s pull techniques, ETONIEN identified eight key initiatives and delivered on-site support to optimize the warehouse over a quarter. 

OUR ROLE

• More throughput regarding their distribution operation 
• A more Lean-focused distribution operation  
• Organized distribution/fulfillment center
• Optimization of complex spare parts fulfillment network  

SOLUTIONS

• Conducted 1-2 weeks of data analysis to identify the operational bottlenecks and area for opportunity
• Ran a SKU Rationalization effort to divide all parts into A,B, C tiering based on velocity and criticality 
• Redesigned product storage according to this criterion ensuring that lead times would be improved for the most critical and high velocity parts 
• Met with the top 20% of suppliers and instituted “sell one, buy one” Kanban ordering to ensure inventory and safety stock levels would be maintained while better streamlining SIOP processes 
• Engaged line operators, supervisors and site leaders to ensure consensus and change management was appropriately conveyed 
• Executed a cost-effective sustainment plan (quarterly on-site check ins) to ensure new business processes took root and personnel were able to sustain increased capacity numbers
• Completed all physical layout and process changes within the quarter (but only 3 weeks on site) with no significant customer delays and keep consulting costs low for the Private Equity client 
• Implemented the CROS Operating Playbook that included optimized process flows, new standard work, visual and daily management to drive productivity increases and connect management and front-line operators 

OUTCOME

• 22% increase in domestic inbound capacity (units per hour)
• 42% improvement in order rate leading to reduced lead times (flight delays and plane up time)
• Improved working capital, reduction of $275,000 worth of inventory YoY