Global designer and manufacturer of engines, fuel and power generation systems

Challenge

Prior to IESA's implementation on site, all MRO and consumable items were stored in line side bins, which were replenished by a third party. Whilst this was a positive for production convenience, there was a lack of visibility pertaining to departmental spend.

Additionally, other procurement and stock management flows were handled in isolation in other parts of the plant, removing the ability to improve cost or manage inventory effectively.

Objectives

  • The client required a solution that would provide unit cost savings, without negatively impacting the service received by the engineering community. Improved visibility on stock usage and spend was also required.
  • The solution needed to service the entire site's stock requirements without additional resource.

Solution

In collaboration with our client, IESA's fully integrated centralised stores management system was installed on a purpose built mezzanine floor within the warehouse, with the capability to add additional levels if necessary.

IESA's barcoding system recorded the destination of every consumable part taken from the central stores; this gave the client visibility on the use of consumables by each production line, information that was previously unavailable.

Additionally, IESA took control of procurement, which was previously split departmentally, allowing for cost savings based on economy of scale.

Benefits

  • Whilst the initial scope of this project was line side consumables, due to the efficiency of centralised stores solution; the stock profile has increased threefold with no additional resource required.
  • To date, IESA has made cost of product savings of 10.8%. Additionally, creating a mezzanine floor has released further floor space for the warehousing and production teams.