Standard Locknut, Inc.
Improves On-Time Performance and Decreases Inventory using nMetric Software

Standard Locknut is one of North America's largest manufacturers of bearing accessories and precision turned steel components. The company produces a full line of bearing mounting products for the industrial markets (the bearing, heavy construction, steel, paper, mining, oilfield, and energy industries), and also provides contract CNC turning and machining services for the industrial, automotive, and heavy truck markets.

At the beginning of 2005, Standard Locknut confronted serious changes to their traditional business model. While the company's business was growing, customers were placing smaller, more frequent orders for a wider range of products. Lead times were becoming noticeably shorter. Forward visibility into demand was becoming impossible. The company's largest customer was also increasing its volume of raw material consignment orders.

To address its challenges and optimize performance, Standard Locknut chose the nMetric Product Suite for Production Logistics.

Benefits

With nMetric, Standard Locknut has been able to overcome the majority of their process challenges and can now address business challenges with a nimble, make-to-order model. The company can efficiently respond to greater demand variability, shorter lead times and increased consignment material requirements. Managers operate with a realistic, real-time representation of shop floor activities, which has allowed them to improve performance overall.

• Overall sales revenue has increased 14%
• Line item order quantity per product line has grown 14% to 18%

• On-time performance has increased 13%, from 85% to 98% on-time completions
• Throughput has increased 8%
• Sales per employee has increased 24%
• Finished goods inventories dropped 38%
• WIP and raw material inventories have flattened and are trending down