Data Driven Success: How this Leading US-based HVAC Manufacturer Boosts their OTD and Clear to Build Rates
An in depth review on how this Heating, Ventilation & Air Conditioning (HVAC) Manufacturer leveraged their data to reduce part shortages and increase your Clear to Build rate.
Value at Stake
Challenges
Deprecated supply chain performance, as evidenced by a Clear to Build rate below expectations and sub-optimal manpower management
Excessive time spent maintaining and updating spreadsheets diverted attention from more strategic tasks.
Dual additional complexity factor of the engineering to order and daily early shipping requests straining teams and causing tensions
Teams operating in a constant firefighting mode dealing with a double uncertainty and experience high levels of stress.
Objectives
Centralize the data into a single platform to allow an improvement in factory operations and a reduction in time devoted to low value-added tasks.
Speed-Up the routine-completion processes to facilitate collaboration across teams in order to improve overall operational efficiency.
Mitigate the pressure of OTD commitment by easing teams' access to up to date information on the status orders at any time.
Extend the planning horizon by detecting part shortages earlier which will minimize the factory's firefighting mode.
Results
In this smooth transformation, leading US-based HVAC industrial equipment manufacturing group utilized Pelico’s Supply Chain Operations Platform to leverage their data in order to reduce part shortages and increase the Clear to Build rate.
Before starting their journey, this factory was tormented by part shortages, high overtime, suboptimal Clear to Build (CTB) rates, and poor On-Time Delivery (OTD) performance. Within just eight weeks, this factory achieved substantial improvements such as:
· 93% Clear to Build Rate: Accurate data management allowed more work orders to proceed without delays.
· 30% Reduction in Part Shortages: Enhanced data visibility led to fewer part shortages, ensuring smoother production flows.
· 12% Improvement in On-Time Delivery: Better planning and data accuracy resulted in more reliable delivery schedules.
· 20% Reduction in Overtime: Improved processes and data management reduced the need for overtime.
This factory’s enhancement in data management and cross-team collaboration led to a significant transformation in their operations, making accurate data a cornerstone for their daily decisions and overall performance improvement.
