You are a major car parts manufacturer that has operations in 50 global cities. You are looking at ways to reduce unnecessary inventory stockpiles that often lead to production bottlenecks.
Which city has the stalest inventory? How much does that inventory cost? How much resources does it tie up? How much could you save this month if you fixed it, and how can you track the improvement daily?
According to ELI, your biggest bottleneck is “Memphis”, costing you “15.4 MM USD”, where “1.2 MM USD” could be saved this month if you follow ELI’s recommendations.
You are one of the world’s largest shipping companies with terminal yards in 26 countries. You are tasked to improve container throughput and incentivize customers to use your port services for the fastest, cheapest, and most consistent service.
Which city has the largest average container dwelling times? How long has this city been your biggest problem? Where should you be focusing your limited resources at? Which cities would improve your bottom line the most? The fastest? How much money are you losing per minute? How much could you save this year?
According to ELI, your biggest bottleneck is “Houston”, with an average container residence time of “1750 Minutes”. This yard has been the biggest problem since “March 7th, 2016”. You should move resources out of “Karachi, Jebel Ali, and Halifax” to fix 15 high throughput potential cities like “Houston, Seoul, and Philadelphia”. Focusing on these three cities could reduce the average dwell time to “1600 minutes” this quarter, saving you 400 USD/min. By following ELI’s recommendations, you could save “Houston” “20 MM USD” this year alone, and improve the “Houston” utilization throughput by “5.3%”
You are a car manufacturing manager going through the classic case of “the manufacturer’s dilemma”. Your plant is losing money. You have 5 engineers running around trying to find your biggest problem. You have lost control on quality, with defective parts quantities going up. You have promised you will deliver 5000 new cars by the end of the quarter. Wall Street is slashing expectations and breathing down your CEO’s neck. Your CEO thinks you are in production hell. You feel there is no end to this madness. People are getting laid off. What do you fix first in your manufacturing line as you are starving for resources?
According to ELI, your biggest bottleneck is at the “Casting” step, with your average utilization currently at “96%”. Your engineers are wasting time looking at the “Incoming Shipping”, “Assembly”, and “Injection” steps for their problems. If you fix the “Casting” process, you could reduce capacity to “85%” by the end of the quarter. This will allow you to have 10% production throughput improvement. This will save the plant “10,000,500 USD” this quarter. This could lead to more delivered cars.