Understand Customer Requirements Far in Advance of What Was Previously Possible
Lisi Aerospace is a company worth more than $1.3 billion that designs, manufactures and services more than 300 customers in 30 countries. With components and subassemblies of high technical content making the difference in its ability to innovate and sustain high operating performance standards.
Specialising in the manufacture of fasteners and structural components for aircraft airframe as well as the engine of the aircraft. The core business of the company is metal deformation, complemented by heat treatment, machining, coating and assembly.
Lisi Aerospace’s service-led project began in 2013, with the objective to achieve a 95 percent on-time product delivery rate across its international customer base.
To get a better understanding of its customers’ requirements, Lisi Aerospace re-organised the structure of its Paris-based customer service team to give them more time to focus on quotations and demand management with the aim of improving the order process. It also sought a best-practice solution to help its team analyse the accuracy of the forecast and orders submitted by customers and improve the speed of manufacture.
In conjunction with its own internal processes, Lisi Aerospace’s Paris headquarters incorporated Optimiza software into the process, an integrated tool specifically designed to connect demand and supply planning to provide an optimum view of next orders and replenishment plans. This has now been rolled out across the organisation’s European customer base, with full coverage planned across North America, improving Lisi Aerospace’s ability to plan ahead and optimise manufacturing across its different sites.
Lisi Aerospace has successfully managed to reduce the time employees spend working on spreadsheets, enabling them to dedicate more resource to analysing the forecast data before goes into the ERP system. This has improved dialogue and relationship with customers and already helped to avoid the cost of creating unnecessary inventory, including the wrong part or volume of inventory being manufactured due to a mistake in the customer file.
They have also found that customers are eager to work with them to get more personalised and accurate service, which enables them to prepare production timescales ahead of time. In future, Lisi Aerospace expects to reduce inventories substantially with an accurate production planning of customer orders to achieve customer objectives in terms of delivery performance.reduction on inventory holding of 50 percent.