Fort Wayne City Utilities freed $500,000 by reducing street light inventory to optimal levels established by proper tracking and control practices.
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PROBLEM
The overall level of inventory stored to maintain our street lighting infrastructure seems high relative to material usage.
SOLUTION
Initially established a database to begin collecting information on variables deemed to be important by the project team. Eventually implemented a Kanban inventory control methodology.
SAVINGS
The City has realized a one-time savings of over $500,000 as the level of carried inventory has fallen from $750,000 at project inception to $275,000 as of December 2005. Increased efficiencies are being realized on an on-going basis through the establishment and documentation of improved standard operating procedures and the implementation of cycle counting.
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Several key staff members at the City of Ft. Wayne worked on this project and formed the The High Performance Government Network. It is a member driven not-for-profit corporation that is dedicated to designing, developing, and deploying high performance accountable public services. For more information on how they can assist your city or municipality, contact them.
Empowered Municipality has partnered with the HPG Network and will be following this project as one of its Featured Case Studies, along with many others. We will be inviting experts from many disciplines to contribute to the overall case study. These kinds of studies will form a unique public asset from which other municipalities can learn from.
