Define a Global Manufacturing Strategy

Case Study: Oilfield Service Tools

Project Highlights

Define a manufacturing strategy to support 2x revenue growth

Evaluated 30 scenarios: network x process x capability analysis

Tiered product strategies developed for premium and volume network

15 work streams defined, enabling the strategy to gain benefits

5

Weeks of analysis

40,000

Fewer SKUs

22%

Better inventory accuracy

$136M

Reduction in Ann. expediting fees

$24M

Ann. productivity, inventory and quality gains

Deliver a system capable of supporting a $3B business in two years.

After a period of stagnation, worldwide demand for Oilfield Services picked up again. This client needed to build a system capable of supporting twice the sales growth over two years. To achieve this, it was critical to determine the best ways to maintain capacity, optimize throughput and put available assets to their best possible use at all times.

A five-week analysis effort concluded how and where to optimize: manufacturing footprint, product work allocation, extended value chains, capacity and scalability, and productivity and performance. Follow-on implementation included developing world-class manufacturing capability via lean methods to reduce controllable lead time, improve maintenance and product quality, more effectively manage inventories and build organizational capability to sustain performance results.

“We had to do something about cleaning up the demand signals coming into Manufacturing … We had been talking about disruptors for years, but it wasn’t until Kaufman Global identified and quantified them that we understood their impact.”

VP, Manufacturing

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