Imagine a scenario where a supplier in the automotive industry comes to you and their customer has a seemingly impossible situation and they need your help. The demand for their automotive bracket doubled, they’ve added international sales, and they require zero defects on the product. The supplier could not meet the new demands with the existing process and did not have an effective solution. A. Stout & Associates first had to fix the process before they could automate and speed up production. The full details on this specific project are in the case story facing-the-realities-of-more-new-business.
After A. Stout & Associates went in to assess the situation, they selected the right process to solve the defects. By selecting the right process, you are eliminating inefficiencies, and other issues tend to disappear as well. The demand created a need to speed up production which in turn led to automating the process. In this specific process, the load and unload had to be done with separate equipment to achieve a 3.5-second cycle. The causes of the defects had to be identified and fixed. After the improvements were made, one operator produced 8,224 parts per day totaling the required 1.9 million annually.
The outcome:
Parts produced per hour increased from 216 to 1,028 pieces.
The revenue increased from $218 to $1028 per hour.
Every additional part contributed 46% to earnings.
Additional earnings for one shift are $775,000 per year.
Implementing the improvements took three months.
The payback for the improvements was two months after implementation.
Every process can improve.
There may be many strategies to achieve success, but only one right answer to continuous improvement. And that answer is… Art Stout! I’ve spent my professional life helping business owners implement the right changes so they can generate cash and grow their earnings in months, not years. My mission is to do the same for you. Let’s schedule a meeting so I can learn about the challenges you are facing, and we can create a solution.
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