An Optics Manufacturer Optimizes Production In a Challenging Environment

Client Context

A global optics and optical systems manufacturer with $250 million in annual revenue serving Aerospace & Defense, Medical & Life Sciences, and Sensors & Detection industries sought to improve performance transparency and production efficiency across multiple sites.

The company faced high process variability, lack of consistent metrics, and unreliable data integrity, making it difficult to track financial and operational improvements. Additionally, independent site operations and diverse management cultures created further challenges in driving standardization.

Key Challenges

• Lack of standardized KPIs and performance visibility across sites
• Inconsistent production controls and unreliable data tracking
• Low machine utilization and long setup times
• Margin erosion due to inefficient cost allocation and cycle time variability
• Limited automation and optimization in production engineering

Approach & Key Success Factors

1. Standardizing KPIs and Management Systems

EFESO implemented visual management tools, performance dashboards, and a structured management cadence, aligning daily shop floor metrics with global reporting standards to enhance transparency and decision-making.

2. Production Control & Cost Allocation Optimization

• Deployed barcode scanning for operations tracking, ensuring accurate cycle time standards and cost allocation.
• Improved product profitability analysis to address margin erosion and sales loss risks.

3. Increasing Machine Utilization & Reducing Setup Times

• Introduced downtime monitors and real-time reporting tools.
• Conducted Kaizen events to optimize machine setup times and increase utilization.

4. Enhancing S&OP & Capacity Planning

• Developed standardized capacity planning and forecasting tools.
• Optimized SAP parameters and reporting functions to improve demand planning accuracy.

5. Automating Production Engineering & Reducing Cycle Times

• Improved automation and tooling design to decrease cycle times by up to 40%.
• Enhanced quality levels and process stability across key production areas.

Results

8-10%

Improvement in throughput across three sites in Europe and Asia.

Up to 40%

Cycle time reduction for high-volume products.

18

Department-level Gemba and shop floor management system deployments.

 

By implementing structured KPIs, automation improvements, and lean manufacturing principles, EFESO enabled the client to enhance operational efficiency, increase profitability, and improve production transparency, positioning them for sustained competitive advantage.