Surviving a Downsizing Divestiture: Applying APICS Education

摘要

In a business where excellent MRP skills, JIT principles, and supply chain ideas have for years been basic survival skills, when things get really tough, 20 years of APICS really helped. This presentation will show how a small, determined materials group survived and prospered under less than ideal conditions, just by using the little things we have all studied for years. In November 1997, Racal Electronics PLC announced its decision to write off and divest of their Racal-Datacom division. Racal-Datacom had suffered losses in large part due to the late arrival of new key products. As key customers became concerned, sales dropped, and money became tight. Without the support of the parent corporation to finance us, cash flow became an issue. Yet, without a strategic plan, few decisions could be made. During the year that followed, the division was sold. Inventory was cut by over 50 percent and continues to drop. On-time shipments increased from 88 to 98 percent, with significantly shorter delivery lead times. Using only PC-based software, every part was indexed to a product family. And a factual analysis of products was developed, showing which were profitable and which were not. This paper is a case study showing real examples of doing little things right and getting big results―how a small group of loyal materials employees became recognized for their contribution at a company now known as Milgo Solutions, Inc.