Outsourcing ’key’ to lean processes

The Requirement

Committed to introducing lean value processes - focusing on value-adding activities whilst eliminating inefficient practices - this aerospace sector leader contracted SMS to manufacture and manage its legacy products and spares.

The Challenge

Having never discontinued a single product, the firm had, over the years, amassed a considerable parts inventory – tying up funds in underperforming assets, damaging its return on investment, and impeding the introduction of desired value streams.

The Achievement

By outsourcing production, the company was able to cut its labour charges and indirect (purchasing, scheduling, engineering, support, transport and invoicing) costs. We even handled the transfer of the related engineering data and documentation.