Pinnacle Strategies

Problems solved

Problems I have solved in plants over 25 years, grouped by the problem. The numbers are what changed when the constraint and the priority system changed. 22 engagements.

Late deliveries and missed delivery dates

One priority system on the floor replaces the hot list, so expediting stops and on-time delivery climbs.

  • 46% → 98%

    on-time delivery

    Brown FintubeHeat exchangers

    • Lead time cut 50%
    • Overtime down 40%
    • Sales up 35%
    • Inventory turns 2 → 10
    • $72k more productivity per employee
  • 30% → 90%

    on-time delivery

    Graphics SystemsArchitectural signage and custom printing

    • Lead time cut 40%
    • Profit up 500%
    • Sales up 40%
  • 30% → 65%

    on-time delivery

    Dixie Iron WorksOilfield equipment

    • Profit up 174% in the initial project
    • Profit up 600% long term
    • Sales up 66%
  • 4 weeks → 0

    back orders

    WilsonArt, Gibraltar DivisionSolid surface products

    • Lead time 4 days → 2
    • Inventory down 30%

Long, unreliable lead times

Control what gets released to the floor and cut batch sizes, so work stops waiting in queues and you can quote a date and hit it.

  • 6 months → 6 weeks

    lead time

    Calavar CorporationIndustrial machinery

    • Inventory down 20%
    • Sales up 25%
    • Profit from negative to over 15%
  • 6 weeks → 3 hours

    lead time

    WilsonArt, Specialty ProductsDecorative surface products

    • Inventory down 30%
  • 24% shorter

    average lead time

    Huisman ChinaMaritime fabrication

    • Productivity up 20%
  • 22 → 17 days

    lead time

    Northwest Paper BoxContract box manufacturing

Capacity shortage: booked out, and the production bottleneck keeps moving

Find the real constraint, protect it, and subordinate everything else to it before buying equipment or adding people.

  • 433%

    more capacity

    FMC Technologies, NorwayMaritime manufacturing

    • Shipments up 326%
    • Revenue up $4M a month
    • Build time 31 days → 8
    • Lead time cut 23%
  • 60%

    more shipments, no new machines

    Reliable MachinistsMachining job shop

    • On-time delivery up 20%
  • 171%

    more shipments

    MatreMaritime manufacturing

    • Revenue up $4.6M a year
  • 27%

    more throughput

    General Motors, Toluca FoundryAutomotive

  • Negative → 11%+

    profit

    FMC Technologies, Wellhead DivisionOilfield equipment

    • Inventory down 30%
    • Throughput up more than 15%
    • Productivity up 15.4%
  • 13%

    productivity gain

    Continental TireAutomotive

Material shortages, past-due orders, and weekend overtime

Replenish to actual consumption instead of the master schedule, and run the floor on a single priority list.

  • 85% → 99%+

    fill rate to final assembly

    Spirit AeroSystems, General FabricationAerospace manufacturing

    • Overtime spending down more than $2.8M a year
    • Inventory turns up 250%
    • Past-due orders down 93%

A disruption knocks the plant sideways

Protective capacity and buffers built into the operating system, so recovery doesn't depend on heroics.

  • 87 days

    to full capacity after an EF-3 tornado (forecast: 12–18 months)

    Spirit AeroSystems, Wichita tornadoAerospace manufacturing

    • Deliveries back on schedule within 30 days
    • $400M in storm damage
  • 33% → 12%

    lost time at decontamination sites

    BP, Gulf of Mexico cleanupEnergy

    • Productivity up 39%
    • 1.5 more productive days per week
    • $700M saved

Projects and engineering work that won't finish on time

Visual project management and critical chain: limit work in progress, one set of priorities, protect the date with buffers.

  • 300%

    more projects delivered

    BP and Worley ParsonsEngineering services

    • Productivity up 40%
    • Costs down $11M a year
  • 125%

    more projects delivered

    ION GeophysicsEngineering services and software

    • Past-due orders to zero
    • Productivity up 125%
  • 960%

    more throughput

    Kongsberg MaritimeMaritime software

    • Warranty costs down $6M
  • 100%

    on-time delivery

    Datu HealthSoftware development

    • Productivity up 300%
  • 20%

    more projects delivered

    Trinity River AuthorityWater utility

    • Productivity up 40%