Manufacturing industry
Reliable inventory as the foundation for predictable production
A new factory, but old logistical practices. With a redesigned material flow and reliable inventory, complete, billable production rose from 1–2 to 8–10 units per day within twelve months.
1. The client and the challenge
A manufacturing company had just opened a new factory, but its logistics processes and working methods had not yet scaled up to match. Employees were still relying on paper-based workflows and existing routines, even though the new environment required a different approach to material supply. Inaccurate inventory levels disrupted production and prevented predictable operations. The assignment for N&J Connect: ensure that the right materials are available on time, in the right place, and in the right quantities, laying the foundation for Just-in-Time production.
Core pain
A new factory only delivers greater returns when the material supply is right. Due to inaccurate inventory adjustments, ad-hoc processes, and unclear material statuses, production could not rely on what should have been available.
2. Our approach
We started by diagnosing inventory discrepancies and production disruptions. Next, we identified the necessary Lean solutions: batch picking, location management, and visual management. We documented the new processes and ownership in a single source of truth. We then implemented these working methods on the shop floor, trained employees, and embedded the agreements into daily operations.
3. The diagnosis
Inventory accuracy was below 80%, with inventory discrepancies reaching 25%. Inaccurate stock transactions, ad-hoc work practices, and a lack of visual management made it difficult to supply production with materials reliably. Physical material flows were out of sync with system records, forcing employees to spend excessive time walking and searching for items. The diagnosis therefore pointed not just to an inventory problem, but to the need to improve material flows, data recording, and responsibilities in a cohesive way.
4. From insight to execution
After validating the diagnosis and the improvement plan, we established the baseline measurement, the improvement potential, and the measurable targets. We translated this into a concrete implementation plan with clear ownership. By introducing batch picking, physical and administrative movements were aligned; fixed locations and guided putaway reduced search times. Visual management made materials and statuses immediately apparent on the shop floor. The processes were implemented and employees were trained, followed by further improvements driven by reliable data and structural embedding.
5. The result
Inventory accuracy rose from less than 80% to over 95%. Within twelve months, fully billable production increased from 1–2 to 8–10 units per day. At the same time, walking distances dropped by 85%, and the staff required for the picking process decreased from 4 to 2.5 FTE. During the latest count after implementation, inventory discrepancies had been reduced from 25% to 3.3%. In this way, a more reliable material supply became evident in both the inventory figures and daily output.
>95%
Inventory accuracy · from less than 80% to over 95%
8–10
Completed, billable units per day · previously 1–2
−85%
Walking distance through location management and visual management
3.3%
Inventory discrepancies at the last count · previously 25%
The production growth refers to complete, billable units per day and was achieved within twelve months. The 3.3% inventory discrepancy was recorded during the most recent count following implementation.
6. Next step
The logistics team has been trained and can now operate independently using the new processes. With reliable data and clear agreements in place, a strong foundation has been laid to further optimize the supply chain. The organization can continue to build on this, with N&J Connect remaining engaged from a distance as a partner wherever needed.