Kontio, the world’s largest log home manufacturer, was struggling with a high seasonal fluctuation of demand. The inability to simulate and control inventory levels led to excessive emergency stocks, high amounts of capital tied to inventories, strong variations and delays in lead times.
Throughout its 50-year history, Kontio has delivered more than 50,000 log buildings while doing production planning entirely on Excel spreadsheets.
But spreadsheet-planned production was the epitome of waste. Furthermore, because the existing system offered no true overall picture of production capability, it resulted in disconnected material flow throughout the factory.
When a company reaches 50 million euros in turnover, it begins to find that its growth is limited by its ability to plan and deliver. It was clear they needed to have a new approach.
Nortal dug deep into Kontio’s planning and production processes in order to find and implement the best planning solution and guide the business towards lean production.
The impact on Kontio’s production planning has been dramatic. Nortal combined the right knowledge with the right tools to impact Kontio’s bottom line: From no late deliveries, eliminated finished goods inventory to increased factory production capacity and double stock keeping unit enabled by Asprova.