Applying SIOP Process Stimulates Sales 30% & Operating Margins 40%

A dearth of capacity to intensify production in conjunction with sporadic shipping of surplus inventory to the production area and limited visibility of incoming contracts / projects caused challenges in accommodating new work. Additionally, an inadequate view of supplier parts coming to the assembly line caused shortages or excesses. Required a process to manage assembly flow through the factory.

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Drove the implementation of a sales, inventory, operations, and planning (SIOP) process as well as a report that each stakeholder contributed to, which gave management the visibility to collectively and effectively oversee the product flowing through the factory. Renegotiated inventory to deliver at a similar pace of product assembly to clear floor space and minimize out-of-spec parts. Reallocated floor space for new product development, allowing for assignment of resources to generate new revenue in lieu of rework and scrapping obsolete or damaged parts.

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By implementing the SIOP process, sales spiked 30%, realized a 50% proliferation in sales linearity, and a 40% upsurge in operating margins within 27 months.

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