Savings in excess of €800K over a 2 year period by applying lean principles
CASE STUDY - ENGINEERING
The Situation
A family-run company with over 40 years of 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 business had experienced aggressive growth in the period before enrolling in an Enterprise Ireland Lean Program with Pembroke Alliance.
The Objectives & Challenges
No formal management and reports structure in the business
No metrics / KPIs to manage output or assist with planning of the drawing office or production.
Poor IT systems and no integration or central data sharing.
Skills Gap – Key requirement in the drawing office for QS and Structural Engineering skills to manage new opportunities and projects going through the factory.
Financial Data – Poor internal controls and procedures in Finance resulting in delays in accessing solid financial information to perform job costings or assist with planning & performance.
“The Lean Plus program has engaged the staff before and after Covid-19 and given them encouragement that the business is looking to the future but this will require their commitment to change. The opportunities identified provide real tangible cash benefits going forward and will allow 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” Managing Director.
Customer Feedback
The Outcomes
Savings Achieved over two Lean Plus Programs accumulating to €600k
Sales Opportunity to bring an additional €56k per week
Fabrication / Welding Labour efficiency gain 50% to 70%
Paint -Improvement of 65% in terms of volumes by using assessing application methods, also less waste as fewer 20 litre drums being used.
Raw Material Purchasing - €75k per annum -Buying Smarter
Fulfillment and expected Delivery times improved
Significant improvement of OEE
Real-time information
Staff more engagement, thinking “Cause and Effect”
Energy Scoping Report produced identifying opportunities in the region of €80k
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