Operations Case Study

Improving productivity and profitability

Operations - Improving productivity and profitability

Problem

A manufacturing facility was experiencing a financial dilemma - affecting productivity and hurting profitability. Every year, customers were demanding cost reductions, while staff expected raises and the cost of materials increased. In order to survive and stay competitive the company needed to make productivity improvements.

Solution

To solve this financial issue, we needed to determine how we could cut production costs and improve overall productivity.  A diagnostic review of the company’s operations and current equipment was undertaken to determine what they needed to do to stay competitive. We took the time to understand the business and its objectives to establish priorities. An analysis of the equipment was conducted to see if it was working to its true potential. We involved staff in brainstorming sessions, and focused the team, listening to their ideas for improvement. Once we had all the relevant data, we developed and implemented an improvement plan, and supported the company and staff while the changes were being made.

Result

By solving the equipment issues, we made the company more cost competitive, ensuring their long-term competiveness. We created an improvement mindset among employees, making them feel that they were a part of the company’s ultimate success, and set up a dynamic that supported change and encouraged creative solutions.