Background: Client could not keep up with increased demand for repair of advanced high temperature gas turbine buckets, even running 24/7.
Situation: High margin first stage buckets accounted for approximately 80% of the repair volume. Second and third stage buckets were mixed into the same production line, even though their machine and operation requirements were far simpler. Employee availability was variable due to demands in other areas of the facility.
Analysis: Variability among parts and employee availability frequently stalled production at the bottleneck operation.
Improvement: Second and third stage buckets were separated from the first stage and repaired in an adjoining area. First stage bucket repair was given manpower priority, with special attention given to bottleneck operations. Second and third stage buckets were repaired as manpower became available, and all stages met lead time commitments.
Result: A 20% increase in capacity was gained within weeks, resulting in a increased profit of $3.8MM. Overtime was reduced, and profit margins began to climb as a result.