Production costs for a mid-sized specialty products manufacturer were
well above industry norms and significantly above best-in-class
producers. The competitive environment was becoming increasingly
worrisome for the company, especially in light of the influx of less
expensive Asian imports. Productivity at the company's facilities was
low and despite very competitive labor rates, unit costs were high.
A comprehensive analysis of all facilities revealed poor production
layout, inefficient business processes, inadequate equipment, and
improper equipment utilization. Using Six Sigma, TQM and Lean
Manufacturing techniques, Orr & Boss assisted the client in
making major quality and efficiency improvements to manufacturing
plants. A combination of physical redesign of process lanes, production
redistribution, reengineering of critical processes and minimal amounts
of capital investment were employed to maximize efficiencies and
- The changes to the plant layout and processes resulted in a
50% reduction in production cycle time.
- The improved efficiencies allowed the company to maintain
its current level of production with a smaller workforce, resulting in
a 15% reduction in production costs on a unit basis.
- The bottom line impact was a doubling of Net Profit on an