Tom O’Reilly, VP, Global Business Development at Rockwell Automation, details how his company’s five-year plan to restructure its facility and supplier networks has led to a four- to five-percent annual improvement in productivity: “If you look at how we did/do it, here are some examples: inventory days dropped from 120 to 82. We reduced our CAPEX … by 30 percent per year. Our delivery within our supply chain went from 80 percent to 96 percent. Our lead times were actually reduced by 50 percent. And then, for customer service, our delivery-to-customer want date went from 82 percent to 98 percent. And with regard to quality, we reduced our PPM by 50 percent.”
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