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TOC Reference Bank - Brown Fintube
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ORGANIZATIONAL INFORMATION  < back
Company Brown Fintube    
Location Houston - United States.
Company Contact   Ernest McAnally
Source of Reference 

Mark Woeppel - case study

Sales $25,000,000
Comments We were very dissatisfied with our reliability as a supplier. Our on time delivery record was an abysmal 40% or lower. We were very unreliable in predicting current months shipment revenue much less out months. We moved to TOC to improve on time delivery and improve our ability to accurately predict revenue per month.
IMPLEMENTATION INFORMATION
Location Houston, Texas United States
Industry Segment Industrial equipment/machinery
Revenue $25,000,000
Number of employees 160
Implementation Date From May 2001 to October of 2002
Markets and Company Share Oil and gas refining, chemical processing
Products engineer to order heat exchangers
Type of operation Design,manufacture and installation
Systems in use Legacy
WHAT WAS DONE?  
TOC Applications DBR, measurement system
Software implemented ManuSync
Processes Order commitment, scheduling, buffer management, sales and operations planning
RESULTS OF IMPLEMENTATION
IMPLEMENTATION RESULTS  
Revenue Increase Increase of $6000 per employee, per month
Inventory Decrease turns from 4-5 to 10-11
PROJECT PAYBACK  
Months to first visible results
1
TOC project payback period in months 4
OTHER BENEFITS  
On-time performance
From 40
To 90+%
Percent improvement 225%
Organizational alignment Dramatic improvement - improved communication and better business planning.
Brief summary On time delivery improved to the middle 90% range immediately after our "flush" period and has been sustained at that level for over a year. This was so even with increased business. Our accuracy rate on monthly revenue projection is always very high, we exceed revenue projections every month. Our accuracy in available to promise is up around 100%. Inventory turns went from about 4-5 range up to a sustained 10-11. Revenue has increased with a corresponding decrease in shop head count. Our average month $revenue per shop employee has gone from a historic $25,000 to two years of $31,000 per employee. We have been able to increase the level of quick turnaround, premium priced business because of our reliability on predicting delivery times.