Change Management

The company wished to use a scheduled factory relocation as the event to implement change and thereby increase margins via the implementation of a lean manufacturing regime. A new factory had to be laid out in line with lean manufacturing principles and the staff trained in lean manufacturing techniques. The three-year orders and sales strategy and plan were to be reviewed and amended to align with these changes.

How did we get involved?

The company was going through a major structural change and was planning to move location. Through conducting a DTI manufacturing diagnosis with the Managing Director we identified the important issues together and planned a way forward.. This enabled the company to obtain grant support for the implementation phase.

What have we done with the company ?

Working closely with the management team and locating the expertise where needed

• We examined the current way of working , proposed a new layout and held workshops with all employees to gain buy-in
• We trained the staff in lean thinking and implemented lean principles across the company - in 2 months the company changed from make to forecast to make to order, releasing over £0.5 million from working capital
• In a 3 month period we specified and obtained quotes for building changes to the new building, installation of services (HVAC, extraction) new equipment, racking, materials handling equipment and then project managed the move to the new site
• We re-assessed the current bonus system, identified training needs for key members of staff and provided one on one coaching
• We have identified and obtained grants, tax relief to support the company

Delivered Project Outcomes

• Review of the design of the new building for efficient use of space.
• Layout of the new building manufacturing area consistent with fixed constraints and additional admin and engineering considerations not requiring integration.
• Improved layout of individual work cells to embrace the concepts of lean manufacturing
• Reduction in the stock stored in the new factory
• Identification of elements that could be outsourced in future
• Establishment of the principals of “lean manufacturing” assembly and test operation in the new layout

Outcomes

• Value added per employee was increased by ~25%
• Value added to the business was increased by ~ 25%
• Delivery times reduced by >50%
• 32 direct jobs secured

Competencies Demonstrated

• Business Process Re-engineering
• Change Management
• Lean Manufacturing
• Value chain analysis and mapping
• Sales & Operations Planning
• Training
• Marketing