Value Stream Optimization in Electrical Engineering Manufacturing

Initial situation

A manufacturer of custom electrical engineering systems faced the challenge of better synchronizing its production and material flows. Although the existing systems were powerful, they were not used consistently to manage day-to-day operations. This led to discontinuities between planning, material procurement, and manufacturing. As a result, delays in material flow occurred regularly, inventories increased, and transparency regarding the status of individual production orders was limited. At the same time, customer requirements for delivery reliability and responsiveness increased significantly.

What we implemented

Stabilization and Self-Management of Maintenance Processes

Together with the on-site teams, the maintenance processes were further developed so that maintenance and equipment monitoring could be carried out more independently and proactively. Clearly defined routines and improved transparency regarding equipment conditions significantly increased theavailability of production equipment.

Transparent and Automated Material Flows

Existing ERP functionalities were used in a targeted manner to make material movements between production areas more transparent. Automated workflows and clearly defined process steps improved synchronization between procurement, warehousing, and manufacturing. This enabled better use of resources and significantly shortened response times to customer requirements.

Optimization of Procurement and Materials Planning Processes

The procurement process was simplified and more closely linked to actual production demand. Forecasting and planning mechanisms introduced in parallel enabled earlier material availability and significantly reduced lead times, particularly for purchased parts.

Introduction of Transparent Performance Indicators

To sustainably manage operational performance, key KPIs such as lead time, OEE, and on-time delivery were continuously measured and made visible to the teams. This enabled the organization to make faster, fact-based decisions and implement improvement measures in a targeted manner.

Result

Improved synchronization of production, material flow, and planning processes resulted in significantly more stable operational control. The organization gained transparency over its value streams and was able to identify and resolve bottlenecks more quickly. At the same time, equipment availability, lead times, and on-time delivery improved significantly. The combination of clear control logic, better data transparency, and operational routines led to measurable productivity gains across the entire value stream.