NCR

CHALLENGE

Remove substantial cost from the global ATM manufacturing process while improving internal quality performance and maintaining or reducing order lead-time requirements for a highly configured/customizable, make-to-order product.

SOLUTION

Analyze the global network of manufacturing plants and develop a new optimized plan leveraging low cost regions and concentrating manufacturing in the regions experiencing fastest growth. Also, apply lean manufacturing concepts to convert manufacturing and test process to one piece flow using strategic material planning and tight coupling of key suppliers to enable highly responsive manufacturing, while utilizing minimal component material stocking. The new lean manufacturing process lowered hours per unit in the assembly and test process.

  • Built a new plant in Budapest, Hungary and ramped to be the highest volume, lowest cost facility
  • Relocated India plant into a new and larger facility with an Export Oriented Unit (EOU) building which became the center of module excellence for global production
  • Expanded the China plant and added capability as module contingency facility and added ATM production for export capability
  • Closed the Canada plant and relocated production to a combination of outsourced manufacturing and to Budapest, China, and India

IMPLEMENTATION

Planning and executing the global manufacturing network changes were fast and successful.

  • Network realignment planned, approved by board and successfully executed in 2.5 years
  • Production location for 70% of units and 90% of modules were affected
  • Cost reduction targets were exceeded
  • First Time Quality in manufacturing improved from 20% to 80%
  • Order lead time for fastest growing regions was reduced by one week

Optio Tempore

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