Case study

Stainless Works: the schedule did not reflect the production constraint

Stainless Works makes performance headers, exhaust systems, and custom components. Long lead times and capacity-management difficulties led the company to ask MAGNET for help. [1]

What the investigation found

MAGNET walked the production process and compared its key elements with ERP inputs. Routings did not supply the information the system required. Correcting them and configuring work centers exposed welding as the main bottleneck.

What changed

The sequence mattered: update routings, configure work centers for scheduling, then use forward scheduling in the constrained welding department.

The operating change
  1. RoutingsCorrect the information supplied to ERP.
  2. Work centersConfigure the work for scheduling.
  3. WeldingSchedule forward around the real constraint.

How the change became part of the work

MAGNET helped Stainless Works change its existing ERP system: corrected routings, configured work centers, and forward scheduling for capacity-constrained welding. These changes supported shorter, more accurate lead-time estimates and helped retain business. The account does not identify the ERP vendor, version, or specific fields.

How the result was measured

Reported lead time fell from 12–14 weeks to five weeks, with $250,000 in increased or retained sales and $50,000 in savings.

The time measure is lead time in weeks. The account does not specify its start and end events, order mix, or observation window. Increased or retained sales and cost savings are separate dollar measures with no stated measurement period. They do not establish annual sales or savings, margin, or return on investment.

The documented result

12–14 → 5 weeks

Reported lead time.

$250,000

Increased or retained sales.

$50,000

Cost savings.

The operating decision

A schedule cannot account reliably for a physical constraint when its operating inputs misrepresent the work. Check routing, work-center configuration, and capacity assumptions before deciding that a different planning tool is the answer.

When the schedule and the shop floor disagree, which routing, capacity assumption or scheduling decision needs checking first?

When the schedule repeatedly disagrees with what production can deliver, the Diagnostic can examine the records, work, and decisions behind it. One recurring operating problem. Two weeks. $5,800.