Aviation Metals boost OTIF

Aviation Metals was invited by Gardner Aerospace to join their 24-month supplier development programme under the auspices of the DTi National Supply Chain Group programme. The programme was designed for Gardner Aerospace to develop their strategic suppliers in addition to developing their own internal processing. TEC ere chosen to be the gorup 'provider'.

Initial project identification that OTIF (on-time in-full) delivery performance was not monitored effectively and probably failed to meet the customer expectation. A six sigma improvement project charter was agreed which estimated the potential savings of £60,000 per year in charges and reducing our potential lost custom and unrealized customer satisfaction by as much as £60,000 per year.

During the ‘Define stage’ of the DMAIC cycle it was recognised that OTIF performance was a prime customer requirement. The ‘Analyse stage’ identified inefficiencies in sales order processing as a key factor and lead to a lean-six sigma data driven, innovative and intensive improvement program.

The project was a success in both measurable results and from a training perspective. The resulting new office based management system has revolutionised the way that orders are received and processed. The following direct improvements were made –

Time to load an order into the customer order book – 100% improvement
Effective elimination in order processing errors
Time to query a customer PO (Customer on phone) – 70% improvement
Time to send certificates to a customer – 67% improvement
Average OTIF measured a 26% improvement to 86% across the customer base
Decreased in order management time of 446hrs per year
Average number of premium carriers per month – 66% reduction
Improvements in basic administrative tasks by the contract controllers managing each customer account gave a substantial saving of 2 – 4 hours per controller per day, allowing more time to talk to the customer and proactively manage the account in all areas

Aviation Metals use Six Sigma

Aviation Metals purpose-built factory

The OTIF (on-time in-full) performance boosting Lean-Six Sigma project not only increased customer satisfaction but also achieved measureable savings of £60,000 per year!

Boosting OTIF perfomance

Using VSM as part of the Six Sigma project

The Lean-Six Sigma project was a success in both measurable results and from a training perspective. The resulting new office based management system has revolutionised the way that orders are received and processed and the company have gained a Six Sigma Green belt.