CASE STUDY : We helped a leading equipment provider to the semiconductor industry reduce lost sales and costs, improve efficiency in the manufacturing process and gain a substantial competitive advantage.
A major equipment provider to the semiconductor industry in the US found that they were losing sales due to the high price of fab product. Their optics subsystem represented the major cost for a key piece of equipment. Anklesaria came onboard to help reduce lost sales by reducing costs and improving overall efficiency. We also identified an opportunity to leverage these benefits to other products and divisions.
We worked together with the client to conduct a Collaborative Cost Challenge with their key supplier using our AIM&DRIVE® process. This process involved a cross functional team including manufacturing, R&D, Supply Chain and Account Management from both companies. We analyzed a host of cost elements including direct materials like glass, coatings and motors and machined parts as well as conversion costs like polishing, machining and machine time.
Due to our efforts, the client was able to extend the life of glass by more than 80%. Most importantly, we helped reduce lost sales and reduced shipping costs by redesigning the acceptance criteria to increase cycle time accuracy. In addition, we also enabled them to improve the polishing process by reducing steps in the process. This led to a shorter lead time that further helped in reducing lost sales.
CASE STUDY : Our AIM & DRIVE process helped a leading oil & gas company reduce costs and increase efficiency.
A major Oil & Gas company faced significant problems when evaluating the construction of an onshore gas asset, one of their major projects. The viability of the entire project was challenged by the deteriorating prospects of gas revenue from lower gas prices and inflationary trends in engineering and construction labor costs in the region. This was where we came in. Anklesaria conducted a series of AIM&DRIVE Cost Challenges on each major apex element with the engineering firm—ranging from gathering lines, trunk lines, power supply and distribution to field compression facilities and well pumps.
We worked together with the client and their EPC supplier, including project managers, construction experts and engineers from various disciplines. We used a number of key strategies to solve the problem: first, we changed various material specifications to reduce unit process, overall quantities requires and amount of construction time and labor required. We also standardized designs of certain high volume materials, integrated and modularized certain electrical and electronic equipment.
Then we went further: from reducing wastage of material during construction to eliminating the need of certain construction steps and activities. We also recommended revisiting the testing and inspection approach for finished work. While stressing the need to adopt construction approaches and planning that reduced the risk of downtime due to weather conditions. We also helped close the gap between the originally assumed and the current market unit cost rates for materials, construction labor and equipment.
Our efforts led to a 20% unit technical cost reduction from the initial budget estimate. Each strategy and revised process made a significance difference in cost avoidance. Anklesaria’s process also led the team to develop a revised concept and budgetary estimate in record time.
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