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Aerospace & Defense Precision in Capacity Analysis and Utilization Management: A Foundation for Productivity Enhancement


Maximizing revenue and profitability by optimizing existing equipment and workforce is a common challenge in order-based manufacturing industries, including the global aerospace engine component manufacturer engaged in this project. Aerospace manufacturing, characterized by order-based operations and precision machining, operates within stringent safety policies and regulatory constraints, making cost-competitiveness and productivity optimization critical.

The client faced escalating labor costs that eroded their global cost competitiveness and increasing capital investment burdens due to growing sales. Despite advances in automation, their internal productivity management systems lagged behind. Addressing these challenges required improvements in capacity management, productivity maximization, and performance tracking to enhance cost competitiveness.

Key Initiatives

1. Establishing Clear Capacity Definitions

The client’s production involved both automated processes like milling and lathe machining and manual processes like welding and assembly. Equipment capacity varied based on operational factors such as downtime, rest breaks, and overtime. Lack of a unified capacity definition led to inconsistencies and communication gaps across departments.

The project established a universally applicable capacity definition, accounting for sustainable operational limits and real-world constraints. This provided a consistent basis for calculating utilization rates, enabling efficient workload management and interdepartmental alignment.

2. Load Forecasting for Optimal Equipment Utilization

Managing workloads at the individual equipment level was critical given the varying capabilities of machinery and fluctuating production volumes. The client previously tracked workload at a departmental level, limiting their ability to respond to scenario-specific demands.

A refined load forecasting model was developed, segmenting workload management by equipment type and enabling scenario-based utilization simulations. This empowered the client to maintain optimal utilization levels and maximize equipment performance.

3. Enhancing Equipment Productivity

While standard approaches to productivity improvements often focus on reducing cycle times for individual products, the client’s low-volume, high-mix production environment imposed constraints. Enhancing equipment productivity required a dual approach:

  • Reducing idle time through better downtime management and automation.
  • Expanding utilization by enabling unattended operations.

Focusing on critical milling and lathe processes, the project identified opportunities to unlock significant capacity without additional capital investment, enabling the client to accommodate hundreds of millions in additional revenue.

4. Improving Manual Productivity

In manual processes like welding and assembly, establishing standard times for diverse, non-repetitive tasks is a significant challenge. The client’s previous time-tracking system lacked reliability, and performance discrepancies remained unaddressed.

The project emphasized improving the accuracy of actual working time data and used high-performing workers’ average times to establish standard benchmarks. This iterative approach ensured a feedback loop where accurate data drove improvements in both productivity measurement and performance.

5. Strengthening Performance Metrics for Sustained Improvements

Sustaining productivity gains requires robust performance monitoring and iterative improvements. The client’s productivity metrics remained outdated, relying on a one-operator-per-machine model and labor-centric measurements despite increasing automation and multi-machine setups.

The project introduced advanced metrics based on equipment runtime and standardized benchmarks for manual processes. These enhancements created a continuous improvement framework, fostering accountability and accelerating productivity gains.

Outcomes and Future Directions

Through this project, the client comprehensively evaluated their capacity and productivity management systems, resulting in tangible improvements:

  • A unified capacity definition enabled more accurate load management and resource allocation.
  • Enhanced load forecasting models optimized equipment utilization.
  • Productivity improvements in key processes unlocked additional capacity, reducing the need for further capital investments.
  • A robust framework for performance monitoring and iterative improvements ensured sustained productivity gains.

The client has initiated the implementation of key recommendations and is exploring further improvements in manual processes as part of their long-term competitiveness strategy. This project underscored the importance of precision in capacity analysis and utilization management as a cornerstone for operational excellence and cost competitiveness.



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A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.