SUCCESS Stories

Constraint management has produced documented successes in a wide variety of industries, both manufacturing and service. Some of these successes are summarized below.

SOURCES: Various books, periodicals, the Internet, and first-hand accounts. For a comprehensive listing of sources, try: Mabin, V.J. and S.J. Balderstone. The World of the Theory of Constraints. Boca Raton, FL: St. Lucie Press, 2000. (Available at www.amazon com)

Bal Seal Corporation (Southern California)

  • Manufacturer of seals for high pressure containers
  • Implemented a 30-day conversion plan
  • Increased output from 65,000 to 100,000 units per week
  • Cut manufacturing lead time from SIX WEEKS to EIGHT DAYS
  • Went from make-to-stock to make-to-order
  • On-time delivery rate increased from 85% to 97% and is still increasing
  • Eliminated overtime (previously a 55-58 hr/week schedule)
  • Net Profit DOUBLED
  • Inventory reduced 50%
  • Improved customer service

(Source: APICS Constraints Management Symposium Proceedings (1997).

Book: Strategic Navigation  Book: Goldratt's Theory of Constraints   Book: Manufacturing at Warp Speed  Book: Breaking the Constraints to World-Class Performance   Book: Brainpower Networking

ROCKLAND MANUFACTURING (Pennsylvania)

  • $10 million job shop making attachments for heavy equipment
  • Made more profit in the two years following application of constraint theory than in the preceding 10 years combined
  • Throughput ($$$) increased 25% in two months
  • Work-in-process inventory reduced 35%
  • Had NO late shipments in 18 months
  • Initiated a profit-sharing program with employees

 

OREGON GLASS

  • Makes tempered glass for doors and windows
  • $13 million per year in revenues
  • BEFORE TOC: On-time delivery performance only 60%
  • AFTER TOC: Consistently exceeded 99%
  • Company went from losing money in 1995 to best-ever profits in 1996-97
  • Company value doubled in 1.5 years

 

OREGON FREEZE DRY

  • Food products and non-food perishables
  • Late shipments reduced from 21% of all goods produced to 0.6%
  • Finished goods inventory reduced by 60% initially
  • Expect to exceed 80%
  • Make-to-order lead time reduced 50%
  • Sales increased 20%

 

LUCAS VARITY (Detroit, MI)

  • Manufactures automobile parts
  • On one manufacturing line, increased output 76%
  • Manufacturing cycle time reduced by 24%
  • First-run yield increased by 4%
  • On-time delivery rates increased to 100%
  • Scrap cost-per-unit reduced by 68%
  • Delayed a $6 million investment in new capacity for ONE YEAR without negative customer service impact

 

Ford Electronics (Now Visteon) - Markham, Ontario (Canada)

  • Manufactures radios, sensors, displays and other electronic components for Ford Motors automobile divisions
  • Manufacturing cycle time reduced 93%
  • From 12 days to TWO SHIFTS of ONE DAY
  • "Liberated" 25% of floor space in the manufacturing facility
  • Eliminated the need for one whole warehouse in inventory storage capacity

 

General Motors (Cadillac Division)

  • Reduced time to deliver a CUSTOM-CONFIGURED Cadillac (From 85 days to LESS THAN 19 days)
  • 24-48 hours, in most cases

(Source: SUCCESS Magazine, Jan-Feb 1995. Back issues available, $5.00 each.)

 

HARRIS SEMICONDUCTOR (Mountaintop, PA)

  • Increased Throughput ($$$) 40%
  • Industry average was 10-20%
  • Went from making NO profit, to providing 80% of the DIVISION profit, to 20% of the entire company's profit
  • Plan to introduce 200 new products in 18 months (Industry average: 20-40 a year)

(Source: Leading the Way to Competitive Excellence (ASQ Quality Press, 1998)

 

FMC Wellhead Equipment Division (Houston, TX)

  • Produces high-performance drilling equipment for land and offshore oil drilling operations
  • Expediting costs reduced 45%
  • Eliminated 70% of work-in-process inventory ($4.0 million/year saving)
  • Lowered outsourcing expenses by $400K per month
  • $50 million in additional annual revenue from the same resources (no additional investment)

(Source: Integrated Design & Manufacturing, Nov/Dec 1997)

 

Zycon Corporation (Santa Clara, CA)

  • OBJECTIVE: Reduce manufacturing cycle time by HALF within 18 months
  • RESULTS:
    - Cycle time decreased from 3 WEEKS to 3 DAYS
    - Inventory decreased 50%
    - Scrap loss decreased 50%
    -Throughput DOUBLED

(Source: APICS CM-SIG Symposium Proceedings, 1995)

 

National Semiconductor

  • Computer chip wafer fabircation
  • 30% increase in Throughput in 6 months
  • 20% increase in inventory turns
  • 35% improvement in manufacturing cycle time

(Source: APICS CM-SIG Symposium Proceedings, 1995)

 

Meritor (Rockwell Automotive) Heavy Vehicle Systems

  • Mjor global supplier of drivetrain components for trucks, buses, off-highway vehicles, etc.
  • 42% increase in Throughput
  • 55% reduction in work-in-process
  • 61% decrease in cycle time
  • 75% reduction in expediting expense
  • 45% reduction in scrap & rework
  • 41% reduction in late deliveries

(Source: APICS CM-SIG Symposium Proceedings, 1998)

 

EMC Technology, Inc.

  • Manufactures RF and microwave components for commercial and military telecommunications
  • 75% reduction in manufacturing lead time (12 weeks to 3 weeks)
  • 67% reduction in backlog (from 700 orders to 225)
  • 75% improvement in schedule "stability"

(Source: APICS CM-SIG Symposium Proceedings, 1998)