CASE STUDY SS-AD-DG-02 | Diagnostic Assessment

Robotics Contract Manufacturer

Unlocking Productivity and Driving Cost Savings Through Lean Transformation

Aerospace & Defense | Diagnostic Assessment

$2–4M

COGS Savings from Efficiency & Flow Improvements

43% → 80%

Projected Improvement in On-Time Delivery

$969K–$1.94M

Working Capital Reduction Opportunity

Challenge

Inefficient operations, poor OTD, high inventory, and lack of Lean practices limited productivity, visibility, and quality across the supply chain. Inefficient operations, poor OTD, high inventory, and lack of Lean practices limited productivity, visibility, and quality across the supply chain.

OTD at just 43%, impacting customer satisfaction and growth opportunities.
High inventory levels (~40 days) due to misaligned schedules, unclear BOMs, and weak planning processes.
Lack of standardized Lean practices — minimal 5S adoption, limited visual management, and inconsistent leadership engagement.
Manual materials handling, no barcode systems, and disconnected scheduling across work centers.
Quality inconsistencies and rising defect rates due to tribal knowledge and lack of inspection standards.

Solution

Delta Driver implemented a Lean transformation with MDI, 5S, visual management, ERP integration, and standardized quality processes to optimize flow and efficiency. Conducted a comprehensive diagnostic assessment to uncover operational, quality, and supply chain improvement opportunities. Designed a Lean transformation roadmap focused on reducing lead times, improving flow, and boosting efficiency:

Implemented a daily management system (MDI) with SQDC boards and KPI-driven performance reviews.
Rolled out 5S workplace organization, visual management tools, and leader standard work for sustainment.
Enhanced supply chain planning through master production scheduling, supplier development, and ERP integration.
Optimized material flow with barcode-enabled WMS, improved layouts, and streamlined warehouse operations.
Standardized quality inspection processes and introduced PDM vault integration to reduce defects and rework.
Executed targeted Kaizen events to improve quoting accuracy, accelerate changeovers, and simplify assembly workflows.

Results

Generated $2–4M in COGS savings, reduced lead times and working capital, improved OTD toward 80%, and built a scalable Lean framework for sustained operational excellence.

Identified $2.03M–$4.06M in COGS savings through improved material flow, uptime, and labor efficiency.
Projected $969K–$1.94M in working capital reductions by cutting lead times by 8–16 days via inventory optimization and better planning.
Provided pathway to improve customer OTD from 43% to an expected 80% through scheduling alignment and supplier collaboration.
Unlock additional EBITDA upside by reducing scrap, rework, and overtime while optimizing assembly throughput.
Established a scalable operational excellence framework built on Lean principles, standardized KPIs, and cross-functional ownership.

Continue Exploring Due Diligence

Back to Operational Due Diligence