Transformational Change and Aligned Operations Drove Short-Term Sales Growth, 53% Margin Improvement, and 70% Capacity Expansion for Scalable Growth

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The Challenge

A large racking manufacturer required a current state production roadmap and longer-term facility strategy to meet a significant growth opportunity. The company had multiple facilities spread across a medium sized market creating significant transportation and labors costs while creating production bottlenecks. The leadership team needed a thought partner to assist in understanding the feasibility of consolidating into a single facility. Simultaneously they needed a short-term path to expand current throughput to meet initial incremental orders.

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Our Approach

Identified paint and weld work centers as the immediate production bottleneck

• Deployed a series of rapid improvement projects to standardize weld, balance labor and material flow, and reduce unit changeovers to double daily output
• Implemented daily metrics, leader standard work and problem solving to develop an Operational System to drive issue resolution
• Alleviated paint line constraints by reducing speed variation across product lines and outsourcing non-critical products

Prioritized machining, roll forming and robotic weld constraints to further expand capacity in the existing footprint

• Replicated tenets of the Operational System to provide daily visibility to performance and problem solving
• Initiated a series of rapid improvement events to improve changeovers, tooling and material flow resulting in a 50 – 100% improvement in output
• Developed a make-for-stock program to streamline scheduling and reduce stock outs on high volume items common across several product

Completed a comprehensive real estate assessment, detailed layout and project plan to re-locate to a build to fit facility

• Modeled current and future capacity requirements to finalize future square foot requirements
• Included future storage, production assets, material movement/egress, technology enhancements and office space into the detailed layout
• Created a project plan that itemized an 18-month buildout and move

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The Results

• Demonstrated 53% contribution margin improvement in year one while simultaneously meeting increased customer demand through capacity expansion
• New facility identified able to support 70% increase in top line revenue growth