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Streamlining Subcontractor Procurement at ASCO Aerospace Canada
ASCO Aerospace is an aerospace component manufacturer in Delta, British Columbia. ASCO is a Belgium based private corporation, with a third location in Germany. ASCO is experiencing significant growth, with increasing demand from customers such as Boeing and Bombardier.
In the course of the manufacturing process, parts are sent to subcontractors for processing tasks such as heat treatment, priming and painting. The project scope was defined as the time from the product being cleared to ship by quality control, to when the product has returned, is once again cleared by quality control and is reintroduced back into the production flow. This part of the process is mainly concerned with the creating of documentation for subcontracting.
The project team was tasked with making the process faster (shorter lead time) and less labour consuming. Through interviews and data analysis, the project team determined that the main causes of inefficiencies were quality requirements regarding documentation of processes and inaccurate or incomplete information.
Analysis revealed that the current process is consuming 3,217 hours annually, involving at least 10 ten different people across multiple departments. The labour consumed is the equivalent of 1.6 full time people. Based on an average salary, this comes at an annual cost of $77,339.
The team recommended the implementation of 3 interdependent projects:
1. Automation of document creation through ERP customizations
2. The use of a web-based portal to communicate information with vendors
3. Contracting a dedicated third party logistics provider
Overall, these recommendations would enable ASCO to use their ERP system to automatically generate all the necessary documentation, while also ensuring the accuracy of data and a fuller integration of their business processes with their ERP system. Quantitative benefits of full implementation are expected to be as follows:
· · Lead-time reduction of one day (50% of outbound process)
· · In-process labour savings of 2,119 hours (68% reduction)
· · In-process cost savings of $53,220 (68% reduction).
Testimonial provided by the Project Host: Robert O’Carroll (Production Control Manager – ASCO Aerospace)
"The team demonstrated a thorough and exhaustive approach in developing the process map. They actively engaged all stakeholders in a positive and constructive manner. The deliverable was a proposal that was well considered and included some innovative solutions to the inefficiencies in the current process. The team was very professional in their approach and a pleasure to work with."
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