Great Lakes Trade Adjustment Assistance Center

 
 
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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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