Boosting Manufacturing Efficiency with Capacity Optimization Solutions Achieving 65% Improvement in Asset Utilization for a Leading Industrial Manufacturer

Business Challenge

A leading industrial manufacturer headquartered in the USA faced significant challenges in optimizing its complex manufacturing process. Operating across more than 10 manufacturing sites with hundreds of machines, the client encountered frequent breakdowns and replacements due to underutilized or overloaded equipment. Additionally, their wide product variety made demand aggregation and line planning particularly challenging, as these processes were largely manual.

Frequent Breakdowns

Manual Line Planning

Overloaded Equipment

These inefficiencies had already resulted in losses exceeding $2 million due to machine replacements and unplanned downtimes. The client urgently required a solution to effectively aggregate demand and recommend optimal line-level plans to maximize asset utilization and production efficiency.

How Quantzig Helped

Quantzig deployed its advanced analytics capabilities to address the client’s challenges by:

1. Analyzing Capacity Utilization: : Our experts first conducted a detailed analysis of capacity utilization, demand patterns, and planned capacity at the site-technology level.
2. Optimizing Production Planning: : The team then developed customized demand allocation algorithms to optimize production planning and ensure maximum efficiency.
3. Building Predictive Tools:: Quantzig created a simulator to predict available capacity at the asset and technology levels.
4. Enhancing Optimization:: Lastly, we implemented strategies to optimize capacity by adjusting run rates and maintenance changeover times to meet varying demand requirements effectively.

Results & Impact

This collaboration led to remarkable improvements for the client. The company achieved a 20% reduction in overhead costs by minimizing breakdowns and optimizing asset utilization. Asset overutilization dropped by 65%, ensuring better balancing of equipment usage across manufacturing sites. Additionally, production output increased by 34% reducing inefficiencies. These outcomes not only recovered significant operational losses but also set the foundation for sustained operational excellence.