Situation
The client was 70 years old family owned heavy job machine shop business with strong experience in re-engineering, machining, welding and repair jobs. The business had serious issues in all areas and needed a turnaround to address issues related to people engagement, resource optimization & management practices. The client’s expectation was for the consultant to assist the business in prioritization, identifying opportunities to reduce waste and in Implementing a Continuous Improvement culture.
Requirements
Schroeder & Schroeder was commissioned to conduct an analysis and recommend the way forward to meet client expectations.
Challenges
The main challenges faced on this project included:
- An old and large number equipment infrastructure with low utilization, except for 5 machines
- Unclear roles and responsibility, including key roles
- A management team that consisted primarily of family members
- A high operations dependence on individual skills
- A lack of staff skill versatility and knowledge transfer
Actions
After analyzing the project requirements our consultants addressed the challenges presented and performed the following actions:
- Conducted a Business Practice Analysis – used Lean methods including Value Stream Mapping, Ishikawa Diagramming, and 5S Analysis, to identify challenges. A key performance factor audit and waste analysis was conducted to identify opportunities for improvement. Observations were also made during facility visits and connected to Value Creation variables (sales, raw materials and labour).
- Identified Challenges and Priorities – identified key issues related costs, delay, and quality. Translated key issues into two fundamental priorities: essential optimization projects and custom optimization projects.
- Identified Potential Gains – conducted a sensitivity analysis to identify potential gains with, and without, growth
- Established a Comprehensive Action Plan – defined a project management approach and recommended four projects with timelines and impacts.
Results
Through this approach, Schroeder & Schroeder identified and recommended an operations optimization plan with multiple projects and goals for the company, including:
- Workplace Organization – to address multiple issues identified in warehouse and shop for tools, incoming material and in-process material with 5S principles
- Performance Dashboard Implementation – To effectively use available data for performance dashboards, including select performance indicators and objectives, and the introduction of routine quality and performance meetings
- Estimating process Optimization – To provide method and resources for estimating in time and mechanism of continuously review and improve estimating process
- Resources Optimization – To improve effective use of people and equipment
- Continuous improvement investment recommendation required for the organization to improve competitiveness.
Upon conclusion of the project, all key success factors had been achieved, and the client was highly satisfied with both the project deliverables and the value added by Schroeder & Schroeder Inc.