Institutionalizing Lean Practices into Enterprise Operations

By Gary Reimer, Senior Director, CNH Industrial North American Parts Operations

Gary Reimer, Senior Director, CNH Industrial North American Parts Operations

CNH Industrial, one of the world’s largest capital goods companies, having relied on traditional methods of doing business and managing processes, was in pursuit of implementing a world-class lean and six sigma program to improve quality, cost and employee engagement.

In partnership with Quantumlytix, CNH was able to remold the way it functioned. The company’s management and supervision were transformed from one based on “best practices” to one that leveraged data and structured lean methods. As Gary Reimer, Senior Director of CNH Industrial recalls, “Our Corporation did not have a regular established lean thinking. Quantumlytix trained us in lean principles and techniques, at the sponsor level. We did exercises with our executive team and also with some personnel who had been involved in lean projects. And that was the beginning of our lean journey that the company embarked upon.” Quantumlytix trained several hundred CNH’s associates and introduced them to time-tested and proven process improvement methodologies.

"Their (Quantumlytix) presence was very valuable; they were amongst us as their senior people were embedded in our operations and they became one of us, and with us on the journey"

CNH’s second initiative with Quantumlytix, about four years ago, was to replace its legacy warehouse and transportation management system. The company engaged Quantumlytix to develop and lead their change management strategy. The challenge was to drive adoption of a new technology that was replacing a legacy system that had been in place for more than two decades. The Quantumlytix team conducted a change readiness analysis of the warehouse operations followed by setting up a PMO (Project Management Office) to lead the various development teams in the implementation. It was one of the largest systems implementation initiatives in the company history at the time. As a partner to CNH’s management team, Quantumlytix led the project management structure, the project reporting, communications plan, marketing plan, change management plan, and orchestrated implementation execution through the initial pilot location ensuring it was delivered on time.

“Their (Quantumlytix) presence was very valuable; they were amongst us as their senior people were embedded in our operations and they became one of us, and with us on the journey. They took the time to understand the needs of our business. They were in the trenches so to speak. They had a wide horizon of gathering information. They did not just speak to the executive team or middle-level managers but took the time to understand our business at all levels,” appreciates Gary.

Another key initiative came at the request of the CNH dealer network to improve fill rate performance of new product launches. By analyzing the company’s new product launch process and determining root causes for stock-outs and back orders, Quantumlytix built a set of management analytics, set up management continuous improvement practices and implemented a business process management solution called Singularity, creating a single process from many systems and data sources to improve CNH’s part fulfillment performance with the aftermarket side of the company. Quantumlytix developed advanced tools leveraging preventive and predictive analytics, simplifying a complex disparate process into a standard repeatable process.

About Quantumlytix

As a global services company specializing in improving the performance of distribution and manufacturing companies Quantumlytix is an implementation firm that delivers intended results.

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