Turn Works, LLC is a company that focuses on leading operational turn around efforts and crisis and interim management engagements. Turn Works enlisted the support of Amelioration Incorporated to support a mid-sized manufacturing company in achieving its goals for achieving a new balanced plant layout that incorporates additional operational efficiencies through the application of Kaizen/Lean process improvement. The target company consisted of 74 employees and had roughly $25M in gross annual sales.
Prior to engaging Amelioration Incorporated, Turn Works had been tasked by a private equity firm to evaluate the necessity of acquiring additional facilities (at a significant cost) in order for the target company to expand to meet their increasing demand. Such expansion, if not warranted, would represent an unnecessary capital expenditure and adverse impact to shareholder equity. Therefore, the private equity firm sought to fully explore maximizing the efficiency of operations within the current facility in order to maximize business value. Demand for the target company’s products was growing at a constant 13% per year and the current demand had already outpaced the current production capability by 9%.
Turn Works, LLC employed Amelioration Incorporated to lead a three- phased engagement to evaluate the target company’s operations and make recommendations for improvement:
- Value stream mapping identified the target company’s key high-level processes and enabled the identification of value-added and non-value-added activities
- Time studies identified the bottlenecks and constraints within the target company’s operations
- Throughput calculations determined the financial benefit the target company would receive by implementing each of the recommendations made by Amelioration Incorporated.
- Lean Manufacturing
- Value Stream Mapping
- Time Studies
- Theory of Constraints
- Throughput Calculations
Amelioration Incorporated’s recommendations identified how the target company could meet increasing demand within the current facility and dramatically reduce inventory, labor, and scrap costs.
Conservatively, Amelioration Incorporated’s recommendations were worth in excess of $2.3M per year in additional net revenue to the target company, representing an annual return on total fees and expenses paid in excess of 4,850%.
What They Had to Say
I was extremely pleased with Amelioration Incorporated’s work while leading a lean event for us. Rich St. Rose conducted the event with a high degree of professionalism and expertise. Over four weeks, he was able to successfully lead the core team to identify several opportunities to streamline operations, improve delivery, and significantly increase profits—all while still utilizing existing space and resources.
If you are looking for a company to help improve your business through the application of Lean and Six Sigma, look no further than Amelioration Incorporated. They deliver results.Neil Minihane, Principal, Turn Works, LLC
I would like to express my appreciation for Rich’s assistance in providing Kaizen/Lean consultation, education, analysis and recommendations to our team at Champion Manufacturing,Inc.
Rich’s knowledge base, professionalism and communication style brought great value to the study and Champion has and continues to benefit from his time guiding us.
Being a relatively small operation and with limited exposure to outside professional advisors, Rich quickly gained our management team’s trust and their positive participation in the Kaizen/Lean project. I appreciated his ability to unite our efforts and allow our team to take ownership in moving our operations to a much improved and cost-effective process.
Without hesitation I would recommend Amelioration,Inc. and Rich St. Rose consultation services to others that can benefit from a Kaizen/Lean study, consultation and/or evaluation.
Thank you Rich and the best of luck.
Rich has great coaching abilities, is able to really get the team thinking outside the box.Bob Jacobs, Production Manager, Champion Manufacturing
Rich did a great job on the value stream mapping for Champion.