Spinning For Success

Posted: 04 September 2018

A cut above: How we helped a textile company reduce costs and release cash

The challenges:

1. Increase capacity of the yarn plant by 18% to enable outsourced yarn to be brought in-house and avoid paying the contract manufacturing premium
2. Reduce work in process (WIP) inventory across the four facilities without negatively impacting on-time customer delivery

How we solved the problem:
1. Our consultants worked with the company to implement solutions that increased uptime as well as the running speed of the equipment
2. We reduced WIP by 19% analyzing order patterns, lead times and adjusting order/production quantities

What next?
We are now working with the client to

• Reduce total waste across two facilities by 22%
• Reduce the cost of quality defects across the business by 25%
• Reduce finished goods inventory level by 23%
• Implement a Sales and Operations planning process to address future changes in the customer landscape