Case Study: Schenck helps manufacturing company address operational concerns

August 14, 2015

Our client’s challenge

A mid-market manufacturing company had growth in mind, but they needed to address a few concerns to ensure their success. Production accuracy and efficiency were only monitored informally and they lacked key performance indicators related to operations. In addition, their operations team requested additional capital expenditures, but without knowing the ROI. They found bottlenecks in moving products through production and their out of stocks were impacting their ability to meet customer needs. In addition, irregular performance reviews and compensation adjustments were affecting their company internally. It became evident they needed to put systems and processes in place.

Projected benefits

Working with Schenck, the team identified the areas where they could make the greatest immediate impact. With Schenck’s help, the company is strategically tackling these challenges. They are projecting a 25% production efficiency improvement and an $8,500 increase in annual net income via a 10% throughput improvement. As a result, they’ve essentially been able to add four production hours per day with no added labor. They’ve also realized a $25,000 cost avoidance in new capital expenditures by innovating how they move product through the production  process. Laying the proper foundation for deliberate and sustainable growth will enable the company to meet their goals and ensure future success.

For more information on the benefits of an operations assessment, contact any member of our Operations Consulting team.