GWE’s business has grown rapidly, and is projected to continue growing. As a result, the current facility has become very space constrained. There is an immediate need to improve space utilization to enable continued growth in the current facility, improve productivity and to eliminate storage on the top rack, which will eliminate the need to install a high rack sprinkler system.
GWE recognized that it needed the outside expertise to assist in improving its space utilization and to become more productive.
CMTC’s approach was to design a project that would provide training and facilitation of improvements. It was critical that key GWE employees be introduced to and trained on the concepts and tools of Lean Manufacturing so that they would embrace change, drive the internal changes needed, and sustain and improve upon the changes. The project objectives were to improve space utilization to support growth within the existing facility; eliminate storage on the top racks to avoid an estimated $50,000 investment in a high rack sprinkler system required by the Fire Department; and improve overall productivity through more efficient product flow, less clutter and a more effective die storage area.
- Increased throughput of $1K - $1.5K per day, or approximately $250K annually
- Increased available space by >10%
- Equipment relocated to improve space utilization and efficiency included waterjet and air compressors, and the elimination of 2 saws, 2 die press
- Sales increase of $420,000 and retained sales of $1,000,000, which led to 10 retained jobs and the addition of 5 jobs
- Investment – New Products/Processes: $100,000
- Investment – Plant and Equipment: $25,000
- Investment – IT: $25,000
" Lead times to our largest customer were 10-12 weeks, and our business was at risk. With CMTC’s assistance, these lead times are now down to 3-4 weeks. This freed up capacity to grow. We are now quoting new business and are in a good position to pick up additional business with our largest customer.”
Todd Teach, PresidentDownload This Case Study