Operational Excellence results in $1.9 Million Cost Savings

Situation

Consumer goods Manufacturer wanted to downsize their facility footprint while weighing several options to truly make their operations excellent.

They need extra arms and legs to drive this initiate to downsize, outsource, and specialize internal departments and areas. This CGM produces products in the consumer, professional, and transportation safety industries and needed to maintain or exceed current customer levels of satisfaction.

Actions

The MetaExpert™ weighed several options to further optimize our customers operations after an observation period involving Gemba walks, critical path analysis, and risk management assessments while considering the following possible customer goals:

  1. Move the administrative team to a different facility.
  2. Outsource some manufacturing to subcontracted companies to lessen onsite facilities.
  3. Transition all internal manufacturing operations to one sole facility.

Results

After our MetaExpert™ formed and chaired three departmental teams in the production, logistics, and administrative areas; collaborated with decision makers and further assessed the costs and benefits of all options.  Collectively these three actions were implemented:

  1. Outsourcing some manufacturing and labor.
  2. Consolidate the current scale of administrative and manufacturing teams now in different facilities.
  3. Rent the now vacant manufacturing and production spaces to generate a new revenue stream.

Return on Investment

  • $1.9 million in projected cost savings from downsizing
  • Training and mentorship of internal teams on operational excellence and process management to further insource ongoing improvement procedures
  • Creation of new revenue stream from renting out now vacant production facilities

Project Details

Client Skills Required: OpEx understanding and deployment, SOP (standard operation procedure) development, lean, root cause analysis, cost-benefit analysis, process mapping, value stream mapping, waste walks, time studies, Gemba walks, program management, cross-functional team leadership, measurement development, stakeholder collaboration, Agile process management

Contract Length: Initially 6 months, extended to 8 months

Support by MetaOps™, Inc.: OpEx mentoring, coaching, and implementation

Manufacturing Insights Magazine named MetaExperts one of 2020’s Top 10 Lean Manufacturing Solutions Provider

Read Article Now

Ready To Get Started?
Schedule a Call Now

Get MetaExperts™ & Get it Done Now

With one phone call, email or clicking a link to schedule a time to speak with the MetaExperts™ sourcing expert. You are just minutes away from getting your improvement initiative started or re-energized.

Contact NowBecome a MetaExpert

©2021 All rights reserved, MetaOps, Inc.

Address

Corporate Address:
10343 RS Avenue
Mattawan, MI 49071
Canadian Address:
168 Blvd Beaconsfield, Beaconsfield, QC H9W 4A1
Mexico Address:
Haciendas del Cortes. Ext. 502 Interior 31
Colonia Haciendas de San Juan
San Juan del Rio
Querétaro, Mexico C. P 76830

Support

734-425-1455
experts@metaexperts.com
envelopephone-handset linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram