Veeco Instruments reduces critical shortages by 50% with LeanDNA
50% improvement in days to resolve quality purchase orders (QPOs).
Veeco Instruments Inc. is a global capital equipment supplier that designs and builds processing systems used in semiconductor and compound semiconductor manufacturing, data storage and scientific markets for applications such as advanced packaging, photonics, power electronics and display technologies.
Managing the production of Veeco Instruments' complex systems, which take 13 weeks to build with a few launching each month, requires precise planning. As the Master Scheduler, Greg Martin oversees up to six systems at a time. With LeanDNA, he now has the critical visibility to forecast two months ahead, a capability he identifies as a key driver of their recent success.
The Challenge: Inefficient Manual Shortage Reporting
Before LeanDNA, Veeco Instruments faced challenges around manual shortage reporting processes that involved downloading data from SAP, reformatting it in Excel, and manually sharing it with management. This process was time-consuming and prone to errors, leading to inefficient communication and long, drawn-out shortage meetings.
"We had to run reports, reformat them, and then use Excel to communicate shortages back to management. The shortage meetings would take over an hour, and communication wasn't effective because actions were outside of SAP." -Greg Martin, Master Scheduler at Veeco Instruments
Additionally, the company’s existing ERP system, SAP, is limited in its ability to provide proactive insights into future shortages. The team could only focus on current issues, without the ability to anticipate and prevent future delays.
The Solution
Veeco focused on enhancing visibility and streamlining the shortage management process by implementing LeanDNA as their intelligent supply chain execution platform. LeanDNA’s Clear to Build capability gives production planners visibility into orders that are ready to build, surfaces missing parts that prevent orders from starting production, and enables planners and buyers to better collaborate and prioritize orders to improve customer on-time delivery (COTD). Additionally, LeanDNA’s Line of Balance reports help Veeco proactively manage shortage risks by identifying critical shortages, allowing the team to understand, prioritize, and collaborate effectively. By using both Clear to Build and Line of Balance reports, the Veeco team gained visibility into all expected production delays. This capability helped them focus on production delays during weekly meetings, enabling better task prioritization, clearer assignment of responsibilities, and more effective progress monitoring.
"LeanDNA allows me to focus on not just what's on shortages now, but also looking ahead to see future shortages. I couldn't do that before. That's the big advantage. We are able to identify not only current status but future needs. With LeanDNA, we see live feeds from our suppliers, so we are all in the know faster." -Greg Martin, Master Scheduler at Veeco Instruments
The Results:
Reduced Critical Shortages by 50%
Since implementing LeanDNA, Veeco Instruments has seen remarkable improvements in its supply chain operations. The average number of critical shortages has decreased by 50% and is holding steady. Additionally, the team has significantly reduced the time spent in shortage meetings, freeing up time to focus on improving other areas of their supply chain operations.
"What used to take an hour in meetings, we now get done in half an hour, and we can use the full hour to cover more information."-Greg Martin, Master Scheduler at Veeco Instruments
Team Time Savings and Faster QPO Resolutions
The improved efficiency has enabled the team to address other critical areas, such as reducing the time required to resolve quality purchase orders (QPOs) and return purchase orders. The time needed to resolve QPOs has decreased from 240 days to 120 days, a 50% improvement, with continued progress toward the company’s goal of 90 days. Freeing up more time for the buyers and giving them more visibility means they can focus on getting more QPOs resolved.
"You definitely need a tool to help your planning process. Just an ERP alone isn't enough. LeanDNA limits the need for custom reports and helps us react quicker, saving time and improving our overall efficiency," -Greg Martin, Master Scheduler at Veeco Instruments
What’s Next:
Looking ahead, Veeco Instruments is focused on further improving efficiency and agility to adapt to a growing business landscape. With LeanDNA as a critical tool in their supply chain strategy, they are well-positioned to achieve their goals of cost savings, increased quality, and faster demand satisfaction. Having already seen significant improvements, Veeco is now prepared for the anticipated increase in demand as they continue their journey to become even more agile and efficient.
LeanDNA has played a transformative role in Veeco Instruments’ supply chain optimization journey. By providing real-time visibility, improving communication, and enabling proactive management of shortages and production delays, LeanDNA has empowered the company to achieve significant operational improvements. For businesses hesitant to invest in intelligent supply chain solutions, the results speak for themselves.
