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Case Study: Performance Improvement Expertise - Manufacturing

March 15, 2022

Case Study: Performance Improvement Expertise - Manufacturing

Synopsis
4 Minute Read

Manufacturing organizations are constantly improving to reduce costs and decrease capital requirements due to downward pressures from industry, supply chain, and the workforce.

Challenges Challenges we solve:

  • Excessive manufacturing costs
  • Lack of systematic business processes
  • Capacity constraints
  • Inventory challenges
  • Sub-optimal operations
  • Reactive front-line management
  • Stagnant or declining revenue growth
  • Inability to maintain safety and quality
  • Skilled labour shortage

case studies Client case studies:

Improving EBITDA while scaling growth

Large medical device manufacturer

Case for Change

With the organization experiencing 20 percent growth year-over-year, the leadership team faced difficulties scaling the business.

Solution

Using process improvement techniques in line balancing, scheduling, scrap reduction, and active supervision, the project team reduced costs and increased output.

Result

With the right supports in place, the organization was able to make an EBITDA improvement of $1.7 million by the end of the project. Focused on reducing non-value-added time, labour costs alone were reduced by 15 percent; the remaining savings were achieved through improved material usage.

Successfully preparing for succession

Mid-sized kitchen and bath manufacturer

Case for Change

Historically operating at a high volume, the organization achieved significant success. But with a decline in home builds and consumer preferences moving towards custom goods, the organization was unable to maintain its quality or deliver on

Solution

We applied Lean Six Sigma methodologies and best practices to increase capacity by more than 50 percent. This included better production scheduling and enhanced performance measurement, including intra-day monitoring and control. By closing gaps, eliminating waste, reducing downtime, and increasing output, the team was able to surpass saving expectations.

Result

Without spending any money on capital investments, the organization saved $1.5 million within nine months of the engagement.

Complete business turnaround and transformation

Small Precision Gear Manufacturer

Case for Change

This family-owned and operated business was successful for more than 30 years. But after the loss of the previous owner, the company was operating at a $100,000 loss for more than two years.

Solution

Targeting a $250,000 increase in net income, the team improved the bottom line through enhanced scheduling, workflow planning and decreased downtime. The organization achieved top line growth by implementing best practices in customer relationship management, sales coaching, and management training.

Result

The organization’s revenues increased from $845,000 to nearly $1.2 million, while also reducing operating costs by $150,000. Most importantly, the new owner gained more control and balance in his business.

"" Current industry trends we’re advising on:

Manufacturing organizations are constantly improving to reduce costs and decrease capital requirements due to downward pressures from industry, supply chain, and the workforce. With high standards for quality, pricing, and delivery, revitalizing operations regularly is essential.

Combining our proven methodology with a tailored approach, we can help you improve all aspects of your business, from the back office to the shop floor. We drive capacity, improve efficiency, and enhance productivity to deliver value for your business.

Contact us

To learn more about how MNP can help your organization, contact Yohaan Thommy, PMP, LSSBB, CMC, Partner.

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