Kennametal is a US-based supplier of wear-resistant tooling and industrial materials with over 50 production plants worldwide and an annual turnover exceeding $2bn. When its production capacity struggled to meet rising demand, Kennametal appointed PA to review its sites across the US, Germany, Israel and India, aiming for optimisation that could be rapidly implemented.
In six weeks, three PA teams working with the factory staff identified 200 quick-to-implement initiatives, which had the potential to increase capacity utilisation at existing facilities by 15 to 30% without major capital investment. The initiatives concentrated on lean manufacturing and improving the manufacturing organisation and structure. We also recommended ways for Kennametal to identify constraints limiting productivity, improve utilisation of resources and continuously improve the quality of products and processes.
Kennametal validated our suggestions and went on to develop specific action plans for implementation at the sites we reviewed, managing the delivery of each solution centrally to gain the maximum benefit.
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