Breaking the Bottleneck: Flow Reengineering for Scrap Equipment PlantDalongkai Technology, Jiangyin China, Machinery & Equipment
Dalongkai Technology, a leading manufacturer of large-scale hydraulic scrap metal recycling equipment, faced growing challenges in meeting customer expectations amid increasing order volumes and complex production demands.
Eddso implemented a compact optimization program to improve delivery lead times and resolve internal bottlenecks. A visible impact was achieved within six months, particularly in logistics flow and production planning.
Challenge
High-mix, made-to-order manufacturing led to delays, storage congestion, and missed deadlines—putting customer contracts at risk.
- Poor Material Kitting
Orders lacked complete sets of materials, causing frequent waiting and out-of-sequence assembly. - Unstructured Shopfloor Logistics
Oversized parts piled up without FIFO management, increasing handling time and confusion. - Returned Units Block Flow
Reworked or returned equipment occupied critical space, slowing progress on new builds. - Delivery Penalty Exposure
Over 90% of delayed orders risked contractual penalties, affecting financial performance.
Solution
A lean logistics plan was introduced to realign production planning and clear internal constraints.
- Material Kitting Dashboard
Created a visual control for component readiness and shortage alerts. - Supermarket Area Redesign
Elevated racking and flow-through storage were installed to enable FIFO and reduce footprint. - Rework Staging Zone
Segregated space for returned units to avoid blocking production lanes. - Delivery Simulation Model
Simulated order routing based on part readiness and capacity, minimizing bottlenecks.
Results
Significant improvements were observed in space utilization, delivery performance, and customer satisfaction.
- +26% Floor Space Released
Removal of blockages and elevated layout created usable production area. - -37% Lead Time Reduction
Improved kitting and sequencing reduced average delivery delay by 3 weeks. - Zero Contract Violations
On-time delivery rate reached 100% for three consecutive months. - Improved Cash Flow Turnover
Faster order fulfillment and fewer blocked units improved working capital velocity.