University of Michigan Business School - Entertainment, Media & Sports
Club
Getting
Started
The
Process
About
An
Ohio Precision Products Producer
Company
Large business; family-owned; established
in 1943
Produces precision machined products
HVAC equipment industry is primary market
Situation
Cyclical ups and downs of the precision
machining industry coupled with a large competitive field consisting
of both foreign and domestic manufacturers in a global price-based
market have created problems for this manufacturer
In 2001, sales fell over 25%, a second year
of decreased revenue for the company. Revenue increased slightly
in 2002 only to fall 22% in 2003
The firm sought assistance from GLTAAC in
the late summer of 2003
Approach
GLTAAC and company management developed
a recovery strategy based upon developing lean process techniques,
implementing a strategic marketing plan, and improving manufacturing
efficiencies
The Adjustment Plan (AP) included 3 areas
for TAA assistance:
Developing lean enterprise practices
throughout the manufacturing process to lower costs and boost
revenue
Development and implementation of a
strategic marketing plan to boost sales and identify new markets
and products
Implementing cost accounting systems
to allow increases in efficiency and reductions in cost
Several additional efforts will be undertaken
and implemented by the firm using its own resources, including human
resource adjustments, consolidation of plant operations, and updating
the inventory system
Actions
The firm's AP was approved in the late spring
of 2004
The company quickly developed and implemented
a marketing and business plan and is currently working on a lean
manufacturing project
The firm is currently too heavily time-invested
in the lean manufacturing project to extend its resources into any
other internal forms of development
Status
The company has experienced an increase
in sales and is creating new contacts in its old markets while expanding
into new markets as well
The firm has experienced an increase in
sales by 26% since the petition and is also growing its workforce
