Lower In-Process Inventories and Better On-Time Performance at Tanner Companies, Inc.

Abstract

In the early 1990s, Tanner Companies had a 74 percent on-time delivery rate and high levels of work in process. To increase on-time deliveries and raise customer service levels, the company focused on production planning and scheduling for the first time. In developing a short-term planning system, we began by designing a garment information system which provided the basis for an analytical heuristic-based scheduling model. During the development process, we actively involved users and managers at all levels to ensure employee support and smooth installation. As a result, the scheduling model was a big success. In one year, it decreased WIP levels by $200,000 and increased on-time deliveries to over 90 percent. The garment information and scheduling system has been well received and has become an integral part of daily operations at Tanner Companies.