Using Lean to streamline operations, increase clarity & reduce costs
CASE STUDY - Manufacturing
“MANAGING DIRECTOR: “…. The Lean Plus program engaged the staff giving them encouragement that the business is looking to the future and it will require their commitment to change. The opportunities identified provided real tangible cash benefits allowing us to price competitively as the markets get more competitive and saturated. We are very pleased with the provider of the program Pembroke Alliance and hope to continue this relationship beyond this program...”
A quote from the owners
The Situation
Our Family run company with over 40 years' experience in fabricating and erecting structural steel as well as manufacturing quality roof and wall cladding systems.
Constantly developing their manufacturing facility in order to supply quality products in a timely and cost effective manner.
The Objectives & Challenges
The Actions
• No formal business structure
• No metrics / KPI’s to manage output or assist with planning or production.
• Weak IT systems
• Key skills gaps in the drawing office to manage new projects
Poor procedures in Finance delaying access to solid financial information to perform job costings
• KPI’s in place to monitor production in the Fabrication, Welding and Paint process.
• Significant improvement of OEE
• IT infrastructure upgraded to each of the main machines in production, to allow improved performance.
• Implemented industry specialised software to assist with estimating and costing.
Controls in place in finance to monitor projects actual vs planned costs through production to installation
The Outcomes
• Savings Achieved over two Lean Plus Programs accumulating to €600k
• Sales Opportunity to bring additional €56k per week
• Fabrication / Welding Labour efficiency gain 50% to 70%
• Paint -Improvement of 65% in terms of volumes along with less waste as fewer 20 litre drums being used.
• Raw Material Purchasing - €75k pa-Buying Smarter
• Energy Scoping identifying opportunities of €80k
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