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The problems and challenges faced by small manufacturers vary
greatly. The strength of the TAA program is that participating
companies can use it to address the specific needs and unique
situations faced by each individual firm. GLTAAC helps client
companies identify, select, secure and finance the best outside
expertise (professional consultant) for each improvement project.
Productivity
Improvement
(Precision Machining Company) Eroding margins, high WIP, and
poor labor utilization prompted this firm to undertake an intensive
lean manufacturing project, during which 3 work cells were completely
reorganized, production was leveled, a kanban system was installed,
and pull production was established throughout the entire plant.
The results? Cell 1 - material handling and floor space required
substantially reduced; $1,200/month labor-cost savings.
Cell 2 - labor hours reduced by 50%; WIP cut from 2,400 pieces
to only 100; 2 sub-assembly operations integrated; total savings
= $15,000/month. Cell 3 - process re-engineered; $23,000/month
savings. The lean process and CI emphasis generated further
saving throughout the manufacturing operation. Overall - inventory
turns improved 22%; scrap down 10%; indirect labor cut by
6% (while increasing machining hours by 60%); and 100% on-time
delivery in the next year. The benefits of this project
have now extended well beyond the shop floor. According to the
President -
"Our
company now thinks about optimizing the entire value-adding
process, not just the chip-cutting part of the business
[For example] cost estimating is now improving because of
the application of lean principles there."
Sales
Development
(Prototype Tooling and Parts Producer) - The steady loss of
long-time customers to foreign competitors made it clear to
this small company that it had to develop new accounts. However,
the shop had always relied on word-of-mouth for new business
and needed guidance on how to proceed. Because management
was already stretched extremely thin, all sales development
efforts had to be highly focused: so this project was short
and sweet. In just 2 weeks, it enabled the company to build
a target list of potential new customers, as well as develop
basic sales strategies and support materials to approach them.
After losing money for 5 years in a row, the firm was profitable
the very next year.
"We are expanding our customer base and continue to build
and pursue the prospect list we developed [through the project]."
President
ISO
Certification
For big companies
(Electronic Components Manufacturer)
- A multi-plant electronics company was attempting to increase
export sales and become a world-class manufacturer. The firm's
growth strategy required both - ISO certification supported
its marketing efforts to foreign customers, and the process
of achieving registration helped improve production processes
and worker productivity.
And
small
(Molded Foam Product Manufacturer) - In order
to retain existing customers and expand automobile industry
sales, this company needed to become ISO 9001:2000-certified.
GLTAAC helped the company find and pay for the training it
needed to do so. As a result, per the VP, the firm added 4
new auto projects within the first year after the project
was completed.
New
Product Development
(Specialty Glass Maker) - This company works closely with
its customers to manufacture highly-engineered products for
customized applications. Due to recent financial difficulties
and changes in the market, however, it no longer had the time
or contacts necessary in-house to develop new products. The
firm needed a seasoned professional with technical sales,
project management, and material science expertise, coupled
with broad experience in the glass industry and market. It
used the TAA program to bring in just the right individual,
on a project basis, to nurture new business. The fit was excellent,
as the consultant identified and contacted target customers,
developed relationships and secured new business, and then
facilitated and oversaw the new product development. At the
close of the project, the CFO reported -
"The
project was very successful. [And] it can only become more
successful with time, since we have new contracts and contacts
that will lead to further opportunities for the company
We have met all of our increased sales goals to date."
Marketing
(Foundry) -This gray iron foundry had been in business for
over a century, during which time it had never needed or employed
a formal marketing strategy to generate sales. In its 107th
year, however, the company found its proven expertise, broad
capabilities and excellent reputation were suddenly no longer
sufficient to secure adequate sales or new accounts. This
project helped the company develop and implement a targeted
marketing plan and sales system, based on hard data from existing
customers, prospective customers and reps. It entailed market
research, coaching, plan codification, system development,
and implementation assistance. Deliverables included a targeted
and pre-qualified prospect list, detailed action plan programs,
a new quote tracking system, an upgraded sales rep system,
and a new website. The company is now much more market-driven
and proactively seeking sales. This project was only recently
completed, but it is already clear that it was a major success.
To quantify the impact, key metrics which will be tracked
by Management over the next year include quoting volume and
win rate, website traffic, and customer satisfaction.
By
cutting the cash required for improvement projects in half,
TAA funding assistance makes major initiatives - the kind
that can transform your business - affordable and cost-justified.
"TAA
has worked well for us. We would have never done this project
without GLTAAC's help - and only now do we understand how
badly it was needed!" Company President
Website
Development
(PCB maker) - This project was for a small company that manufactures
a commodity product for a market dominated by imports. Importantly,
in an industry that values e-marketing, a unique advantage
of the client was its website URL. Still, despite having a
highly visible address, its website was substandard and did
not support the company's core competencies (quick order turn-around
and small batch capabilities). The project improved the appearance
and functionality of the website, which now accepts on-line
RFQs. No further e-commerce capabilities were built into the
site because the company did not have the infrastructure to
support them. This made the upgrade financially feasible,
and the website is now an important source of sales.
"We
saw results as soon as the project was done, and we still
see the effects today." Company Owner
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