Cost saving plan saves millions
An aviation services and ‘green’ aircraft business came to CornerStone to reduce its costs and cycle times and improve customer service after its processes and systems became overloaded following rapid growth.
CornerStone analysed the business to determine the key drivers of costs and lengthy cycle times and developed an action plan to address issues. A focus team managed overall productivity improvement activities.
- Implemented a system for engineering management to ensure the correct drawings were released on schedule, allowing operations to complete its work with minimal delay.
- Developed a new planning process, allowing for alignment with baseline engineering planning and removing the need for ad hoc on the floor production planning for each individual aircraft.
- Redesigned the kitting of materials process, eliminating non-valued direct labour activities by providing materials to the aircraft production team in required amounts and on time; also eliminated lost and damaged materials.
- Implemented a new production control process that aligns activities across production shops, insuring the right things are built when required.
- Designed and implemented an integrated master schedule that tied all work together, including planning, kitting and production. Implemented systems for workshop management and to support the integrated master schedule at executive level.
- Increase production of ‘green’ aircraft by 25%.
- Reduce custom cockpit and cabin installation hours by 20%.
- Attain a 97% customer reliability schedule.
- US$12 million (£7.97 million) in cost savings from reduced hours spent on each aircraft.
- Additional annual margins of US$3.5 million per aircraft.