Innovative Consolidation of Technologies with Reduced Costs



SITUATION 
In 1990 company was implementing a full MRP/2 solution, including interfaces to key upstream & downstream suppliers. This created a need for high-speed data networking between the manufacturing plants and corporate headquarters. The direct solution was to deploy additional leased lines to each of the plant facilities at a cost of $40,000 per month.
ACTION PLAN 
  • Analyzed existing connectivity between the plants and corporate HQ. Discovered that trunk lines already existed for voice traffic. Traffic study indicated the lines were utilized at 10% level over 85% of the time.
  • Devised innovative approach to share the same leased line between the new data needs and the existing voice traffic. Determined the commercial availability of advanced technology allowing the dynamic sharing of bandwidth.
  • Created & presented executive briefing detailing cost avoidance opportunity. Built consensus through presentation to CIO council and each plant manager.
  • Negotiated leased line rate and cutover with local telco. Optimized voice connectivity at the same time eliminating 70% of voice trunk lines.
  • Produced & managed implementation plan for 5 plants in 3 states. Conversion was transparent to all parties.
  • Designed infrastructure to achieve six sigma uptime through alternative route creation and redundancy of critical components
RESULTS 
By identifying and embracing the vanguard of voice/data integration technologies, the company realized a $40,000/month cost avoidance. Additionally, the optimization of the voice environment resulted in several thousand/month more net cost savings. The program was well received as it addressed the immediate data bandwidth needs while producing a net reduction in operating costs.