Photo Etch Revamps Purchasing Model
New Model Creates Savings for Company and Clients
FORT WORTH, TX - July 28, 2007 - Photo Etch, a leading aerospace manufacturing company, worked with the Supplier Excellence Alliance (SEA) to implement a Kaizan in the company’s purchasing department. As a result, the inefficiencies of a just-in-time model will be eliminated and the company will reap numerous benefits including yearly estimated savings of $150,000.
Overall, Photo Etch’s revamped purchasing model will:
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Base inventory on 2 to 3 years of historical data |
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Reduce part shortages since inventory is re-ordered as soon as back-up inventory reaches a certain level |
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Offer customers long-term locked-in pricing and help reduce price fluctuations |
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The document control clerk’s tasks were increased so engineers could focus on engineering-related activities. |
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Release blanket orders automatically |
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Charge working inventory to jobs more quickly |
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Centralize point-of-use inventory for increased productivity |
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Increase inventory turns which will lower operating costs |
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Create KANBAN-based processes and documentation |
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Save the company an estimated $150,000 per year |
According to Randy Fry, CEO of Photo Etch, “The changes in our purchasing procedures will reduce costs, increase production and reduce turn-around times, giving us a stronger competitive advantage.”
By the end of August 2007, Photo Etch’s new purchasing model will be fully executed. Beginning in September, the company and its clients will start reaping the benefits.
About Photo Etch
Photo Etch designs and manufactures displays and control panels used for military and commercial airborne and ground communications, as well as navigation systems. The company also manufactures flight simulation and training components. One of Photo Etch’s specialties is night vision technology for airborne military operations. Photo Etch’s client base includes major defense contractors like Boeing, Lockheed-Martin and Grumman Aerospace, as well as U.S. Department of Defense agencies like the U.S. Air Force and U.S. Navy. Founded in 1960, Photo Etch follows ISO 9001 and SAE AS9100 quality standards, as well as a company-wide lean manufacturing initiative. The firm operates from a 50,000-square-foot facility in Fort Worth, Texas. For more information, visit www.photo-etch.com or call (817) 332-3806. |
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