Location: Kansas City, MO
Our client is an IT Server de-manufacturer, re-manufacturer, and reseller of IT servers, specifically data center server racks. Prior to engaging our systems and consulting teams, the client’s network consisted of a series of facilities that were assembled without a cohesive strategy, operated without a defined end-to-end flow to facilitate the de-manufacturing / re-manufacturing processes, and had no clear tactical execution plan at the operations level.
Johnson Stephens was first engaged to help build the network strategy and create an executable roadmap down to the operations level. The intention of this strategic effort was to align the network with the forecasted growth plan and provide a cost-efficient operating model. Following the strategy engagement, our teams facilitated the design and execution of the core hub facility in the network, which is located near Kansas City, Kansas. To help align the broader network to the optimized KS facility operation, we were subsequently engaged to develop a tactical process / flow optimization plan, along with a labor / capacity planning tool to facilitate and standardize daily operations throughout the network.
We were able to help our client realize a network strategy that provides long-term capacity to support a 311% growth plan. This reconfigured network supporting the long-term growth plan realizes that goal with an operating expense cost avoidance between 6% and 21.3% lower than alternative network approaches.
During the execution phase of the Kansas City hub facility, we were able to realize an optimal de-manufacturing and re-manufacturing flow that dramatically improved processes and material movement with a capital spend that was approximately 25% of the budget projection.
How We Did It
During the network optimization effort, our team worked closely with our client to select an option that effectively balances cost and service level. As a service provider to their data center clients, service can not be compromised, yet downstream customer demand must be satisfied to be profitable. Our consulting team worked diligently to understand the technical nature of the operation and employees to ensure careful consideration was given to the final location of the network sites.
Process flows were mapped and timed to generate a value stream map for the end-to-end operation. This effort helped support the design and implementation effort of the Kansas City facility, along with the process optimization effort used to align all operations in the network.
Through the process and equipment design effort, we were able to create linear and simplified Lean flows, which improved the efficiency of both labor and product movement throughout the facility. In addition, we created clear and distinct check points through process design to ensure adherence to all data security protocols. This effort was then incorporated into a custom-built labor and capacity planning tool for daily, monthly, and annual operation planning needs, allowing the facility and staff to operate effectively with consideration to inbound and outbound demand.