Improve procurement and inventory management
Increase production output
INDUSTRIAL SME – DISTRICT HEATING
Review procurement and inventory management, deploy standard work and improve production operations.
A practical assignment focused on costs, flows and productivity.
Context and objectives
The company manufactures equipment and carries out installations for district heating networks.
The assignment covered three areas: warehouse management, component procurement and manufacturing operations, both in the workshop and on site.
The objective was to improve visibility of available inventory, reduce procurement costs and structure working methods. The assignment combined a review of existing practices with the implementation of practical tools that teams could use in their daily work.
Three improvement levers
Inventory
Improve Warehouse Management
A full inventory of 1,200 stock items improved the accuracy of stock records. A management tool was selected and deployed to track incoming and outgoing items.
This work also identified unused items and opportunities to reorganise storage. The objective was to improve traceability and visibility of available components.
Welding and assembly
Standardise Production Operations
Manufacturing flows and sequences were reviewed, with production routings and standard work formally documented.
For cooler production, rotators and purpose-built trolleys were introduced to simplify handling and assembly.
The assignment also covered on-site assembly methods for the steam shut-off systems.
Procurement
Review Sourcing and Supply
Supplier sourcing and development focused on four critical components used in remote steam shut-off systems.
New sourcing options reduced purchase costs within this scope. This change also resulted in longer lead times, which had to be incorporated into supply planning.
01
02
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Measured results
-40%
Procurement Costs
for the selected components
+20%
Productivity
in manufacturing
€60,000
Purchasing Savings
across four components
What levers could improve your operations?
Inventory, purchasing and production: let’s identify the priorities and practical actions for your teams.