Northrop Grumman Saves Millions with L2L
Northrop Grumman Corporation is a top-tier aerospace and defense technology company.
With L2L, Northrop Grumman has:
-> Significantly increased operational availability
-> Boosted production capacity
-> Dramatically reduced labor costs
-> Achieved compliance with government preventative measures
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Labor cost reduction
Northrop Grumman implemented L2L in order to become more efficient and competitive.
Before
Northrop Grumman needed to lower product and maintenance costs to effectively re-compete for the award of a government-owned munitions plant. The plant needed to deliver a quality product at a significantly lower cost.
Now
The company reduced maintenance labor costs by over 60% in the first year, with an additional 40% reduction in the second year. This dramatic cost reduction significantly improved competitiveness for government contracts while maintaining product quality.
With the L2L Dispatch system in this plant, they're setting the pace for the rest of this company.
Production capacity optimization
L2L helped Northrop Grumman achieve substantial production increases through process improvements.
Before
The facility faced challenges in maximizing production output while meeting strict government requirements and managing costs effectively.
Now
Northrop Grumman increased production by 50%, creating significantly more output with the same equipment and facilities. This dramatic improvement was achieved while simultaneously reducing labor costs, creating exponential improvements in productivity and efficiency.
We've tried literally dozens of other solutions, CMMS, and attempts at lean programs in the past 28 years, but this is the first one I've seen truly make a difference.
Operational availability improvement
With L2L, Northrop Grumman significantly improved OA while maintaining its focus on cost reduction.
Before
Meeting government-required preventative maintenance measures while controlling costs posed significant challenges, often resulting in reduced operational availability.
Now
Operational availability increased by 38% in just six months. Detailed data solved recurring problems and optimized preventive maintenance efforts. Real-time transparency into resource engagement drove immediate accountability while supporting cost reduction goals.
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