Tag: on-time delivery

  • How Johnstech Reduced Lead Times by 50%

    How Johnstech Reduced Lead Times by 50%

    The semiconductor industry is competitive, with efficiency and reliability being paramount for success. Johnstech International has consistently delivered results that surpass industry standards, most notably achieving a remarkable reduction in lead times to just 3-4 weeks, compared to the typical industry standard of 5-8 weeks. This achievement underscores their use of advanced planning, scheduling, and execution technology, setting a new benchmark for operational excellence. As manufacturers face the challenges of complex supply chains and market fluctuations, Johnstech’s approach over the last two decades stands out as a powerful example of how to optimize production and ensure timely delivery.

    testimonial from johnstech master scheduler

    The Challenge: Navigating a Volatile Market

    The semiconductor market is characterized by fluctuating demand and intricate production cycles. The global chip shortage during the pandemic amplified existing pressures, making on-time delivery a critical differentiator in the competition. For Johnstech, maintaining its position as a top-tier provider of test contactor solutions meant addressing several key operational hurdles:

    • Meeting Aggressive Deadlines: The industry standard for lead times can stretch from 5 to 8 weeks. Johnstech needed a system to consistently outperform this average.
    • Managing Complex Production: The nature of Johnstech products required a dynamic scheduling system capable of handling complex dependencies and priorities in real time.
    • Ensuring Visibility: A lack of real-time visibility across the production floor can lead to bottlenecks, delays, and inefficient resource allocation.

    To sustain growth and meet customer expectations, Johnstech required a solution that could synchronize its entire manufacturing environment, from the shop floor to the executive level. The goal was to build a resilient, demand-driven operation that could adapt to market shifts without sacrificing quality or speed.

    Real-Time Planning and Execution with SyncManufacturing®

    SyncManufacturing® provided Johnstech with an advanced planning and scheduling (APS) system that synchronized and prioritized all critical resources. This system moves beyond traditional enterprise resource planning (ERP) RP limitations by offering a dynamic, real-time approach to production management. The software managed constraints and adapted fluidly to drive flow and ensure on-time production. Synchronizing the entire supply chain allowed Johnstech to manage priorities, status, equipment, and alerts with unparalleled precision. This capability was instrumental in optimizing workflows and minimizing idle time.

    Unprecedented Visibility with SyncView®

    Complementing the APS system, SyncView® created a real-time visual factory. This tool provided multi-enterprise visibility, keeping every level of the organization synchronized and informed. Decision-makers, planners, and operators gained access to live data on priorities, equipment status, and potential constraints. This level of transparency empowered teams to make proactive, data-driven decisions. Instead of reacting to disruptions, they could anticipate and mitigate them, keeping production schedules on track. The visual interface made complex data accessible and actionable for all stakeholders.

    The Results: Setting a New Industry Standard

    The implementation of this integrated software suite yielded transformative results for Johnstech, solidifying its reputation for reliability and performance. The data speaks for itself.

    Industry-Leading Times

    By optimizing every facet of its production process, Johnstech dramatically reduced its lead times. The company now consistently delivers complex, custom solutions in just 3 to 4 weeks, a stark contrast to the industry average of 5 to 8 weeks. This speed provides Johnstech and its customers with a significant competitive advantage, especially in a market struggling with the global chip shortage.

    Exceptional On-Time Delivery

    Another impressive outcome is Johnstech’s ability to surpass a on-time delivery goal of 95% and maintain a 98-99% on-time delivery rate. This near-perfect record is a direct result of the real-time synchronization and advanced planning capabilities of its new system. For customers in the semiconductor industry, where project timelines are rigid and delays are costly, this level of reliability is invaluable. It demonstrates a mastery of the supply chain and a deep commitment to customer success.

    Get the Full Story

    The Johnstech story is more than just a case of successful software implementation; it is a testament to the power of demand-driven manufacturing. By embracing real-time data and advanced planning and scheduling, the company has not only weathered the global chip shortage but also thrived. Their ability to deliver faster and more reliably than competitors offers a compelling model for any manufacturing leader aiming to optimize operations.

    To get the complete details of how Johnstech achieved these remarkable outcomes, download the full case study. Discover the specific strategies and technologies that enabled them to redefine performance in semiconductor testing.

  • Are Your Manufacturing Metrics Meaningless?

    Are Your Manufacturing Metrics Meaningless?

    Are your manufacturing metrics meaningless?It seems not a week goes by when I don’t hear from someone in manufacturing: “You can’t manage what you can’t measure”. Of course, there is a lot of truth to that statement, but as someone who spends all day, every day, helping manufacturers gather real-time data for better operational performance, I believe the statement is incomplete. The axiom should be: “You can’t manage what you can’t measure consistently and accurately.”

    Take the exameasuring on-time deliverymple of On Time Delivery (OTD). In any manufacturing environment, delivering what you promised when you promised is good business, so measuring this metric makes sense. However, as simple as this metric should be to measure, it can get complicated. Consider this scenario:

    The Challenge with Measuring On-Time Delivery

    Bob in sales promises a customer that their order will be shipped by the 15th of the month. The factory comes back and says, given the current production load, there is no way we can get the order out the door until the 25th. The order isn’t big enough, nor has the customer done enough business with the company, to warrant upending the production schedule to meet the promised delivery date. As a result, the factory’s understanding of the promise date is the 25th, while Bob’s (and the customer’s) is the 15th. Who’s right?

    Let’s say the customer’s order history does warrant upending the production schedule, but that throws off the delivery date for several other orders. These customers are accommodating, so despite the chaos in the factory, the change doesn’t result in any lasting harm. If the factory then delivers these orders by the new promised delivery date, are they still “on time?” What if the customers wOn-time delivery OTDhose orders were affected hadn’t been so accommodating?

    Later that month, the factory manager is called on the carpet by the CEO because according to his monthly reports, the factory’s OTD rate is less than 50%! (The report IT creates for the CEO compares the original promised date against the actual delivery date.) The factory manager pulls out a spreadsheet showing the production schedule against actual delivery. According to his figures, the factory’s OTD rate is 95%. Not perfect, but darn good. Is the factory manager’s position defensible?

    Making Manufacturing Metrics Meaningful Again

    Let’s take a look at a few of the challenges presented in the above scenario and how Synchrono can help resolve them.

    #1 One version of the truth –  The factory manager’s spreadsheet is the type of “red flag” we look for when clients call us in to ask how they can improve operations. Spreadsheets in manufacturing almost always mean that people are working from different versions of reality. Not only is there a question of where the data comes from, but studies also show that a good portion of the spreadsheets used in business contain errors. Creating a common definition for key metrics and then letting a system, such as SyncView from Synchrono, serve that KPI up in a dashboard helps ensure everyone is working from the same version of the truth.

    Related Post – It’s Time: Manufacturers Need to Cut Ties With MRP and Spreadsheets

    #2 Bridging the Divide Between Production and Sales  – In many facilities, the last thing the production scheduler wants to do is take time out of their day to negotiate with sales. Every call could mean a change to their carefully crafted schedule. For their part, sales is more interested in closing business. If they’re promising unrealistic dates, well, they can always ask for forgiveness later.

    capable to promise date (CTPD)SyncManufacturing considers all resources when calculating capacity: materials, people, processes and equipment – and delivers a “capable to promise” date (CTPD) that the factory can meet given current supply and workload. Many Synchrono customers give sales access to this information during the sales process, eliminating unrealistic promised delivery dates or the need for sales to call the factory. In the example above, Bob would have been given a CTPD that he could reliably provide to his customer, making the issue of conflicting OTD metrics moot. Just as important, providing Bob with a CTPD prevents Bob – and the organization – from making a local decision that could have enterprise-wide impact. Along with CTPD verification, many SyncManufacturing software customers put a process in place where they talk through the options available when a customer request date cannot be met. This way, the organization can have a systematic discussion of what can be done, rather than making a decision in isolation that could have wide-spread ramifications.

    #3 Synchronizing Resources to Demand – Finally, many of our customers have dramatically increased their on-time delivery rate through the synchronization of resources to demand. At Rex Materials Group, on-time shipments went from 50% to 98% in one facility. I should also mention that Synchrono helped RMG lower lead times as well. Many orders that used to take three to four weeks can now be delivered in less than five days. Some products even have a 24-hour turnaround. Orders can be shipped the next day with no extra effort.

    Supply and demand synchronizationIf your manufacturing metrics need an overhaul, here are a few additional resources you might appreciate:

    White paper: Metrics That Drive Action

    Video: Visualizing Metrics in the Factory of the Future

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