Germantown, Wisconsin – www.nelsoncontainer.com
Nelson Container Corporation manufactures corrugated boxes, corrugated pads, made from purchased materials, and partitions.
Results presented by Thomas Nelson (President), Pat Nienhaus (Manufacturing Manager) and Toby Shaw (Account Manager) at the QRM 2009 Conference.
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QRM Background
Before implementing QRM, Nelson Container took several steps to get the organization ready for the change: a QRM book club, a QRM workshop for the entire organization and meetings with other QRM Center members laid the groundwork for further implementation.
Together with the QRM Center, Nelson Container started a project to identify waiting times, determine MCT and reduced inventory. The ultimate goal: a 25% reduction in the finished goods inventory levels without degrading delivery performance.
Projected Results
- 69% reduction in FTMS items
- 59% reduction in value of inventory
- 30% reduction in capital tied up in finished goods inventory
- 70% reduction in inventory holding cost
Quantified Results
- 29% reduction in inventory levels was achieved: inventory levels (in number of units) decreased from 285000 in December 2007 to 201212 in March 2009.
Implications
- Ability to handle 20% increase in additional business without impacting existing service levels
- Increased revenue through additional business
- Tangible benefits such as: less material handling, improved customer satisfaction and decreased number of hot jobs and expediting activities