|
||||||||||||||||||||||||||||||||||
 |
||||||||||||||||||||||||||||||||||
|
Custom Shutter Manufacturer New owner prepares company for expansion. Background: An established custom shutter manufacturer was purchased by a new owner with limited industry background. The purchase was made with the intention of expanding through acquisitions and organic growth. The company’s product was sold through wholesale designers only. From initial contact with a designer to delivery of the finished product took an average of 10 weeks. Challenge: The existing company culture was mired in a “we’ve done it this way for years” routine. As The Plaid Group began to examine the situation, it was discovered that the longest portion of the 10 week cycle fell in the order entry stage. On average, pre-production was taking five weeks – half of the entire cycle! Often when designers called to place orders, they would not have all of the required specifications (color, size, style, etc.), essentially halting the order’s submission to manufacturing. Customer service would then follow-up with a letter to the designer requesting the missing information. If no response was garnered within a week, another letter would be sent. This process was repeated until all specifications had been determined. Once the order was released to manufacturing, it took an additional two weeks for production and assembly, and an additional three weeks to get the shutters installed. This three week delay was in part because the company was waiting until the shutters rolled off the assembly line before arranging for installation. Strategy/Solution: The Plaid Group began by interviewing employees at all levels to understand the steps that each department went through as the order moved through the production chain. We also analyzed all available operational performance data and mapped the entire production process. As we examined the timing it became clear that the company’s entire operation was broken down into three primary activities – order entry, manufacturing, and installation. Through The Plaid Group’s process analysis and mapping of the company’s process, the new owner now had a very simple, clear picture of the steps an order followed from beginning to end, as well as the related problem areas. We outlined several simple solutions that would make the most impact on the company’s performance. First, we created a checklist for designers so that when they placed an order, they immediately knew what information was required. Additionally, designers were notified that all specifications must be outlined before an order could be placed. Second, follow-up moved from US Mail to phone calls, faxes, and e-mail. After these recommended changes were in place, what once was a five week process was shortened to less than a week. Customer service also began scheduling installation once the shutters were halfway through the manufacturing process, shortening the installation timeline by a week or two. In total, the company was able to shorten the entire order fulfillment process to four weeks – effective immediately. Results: The new owner began viewing the company as an assembly line versus a group of disparate business functions. This new perspective allowed him to understand the business from a tactical level; and as a result, he was better prepared to manage and improve performance. Additionally, The Plaid Group’s solutions provided an assessment to establish a benchmark for current performance and developed a clear plan for improving financial and operational performance. Other results included:
|
||||||||||||||||||||||||||||||||||
 |
 |