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Hosca are'the' lean manufacturing consultancy

Case Studies

Client :- UK’s Largest Hinge Manufacturer, North West England
Situation :-

Own-Label supplier of product to major DIY sheds and retailers. Operating at a loss, involving 347 people most of whom were inflexible and reluctant to transfer to other jobs. Huge cultural and working practice issues, and high levels of union and management intervention. High levels of WIP and Finished Goods and up to 50% quality defects.

Objective :- To achieve 8% Return on Sales and be cash positive within 12 months

Proposal :-

Initial feasibility study to understand problems and issues, followed by aggressive cellular re-modelling of the business relating to ‘customer’ or ‘product family’.

Approach :-

Renegotiation of the factory ‘piece-work’ scheme

Multi-disciplinary and multi-level teams were created. These teams were trained to analyse and determine best working methods themselves in order to ensure ownership and commitment to any proposed solutions. Teams given controlled freedom to implement changes.

Outcome :-
  • Significant reduction in Finished Goods and WIP virtually eliminated
  • Factory space requirements reduced by 70%
  • Flexible workforce
  • Harmonious industrial relations
  • Sensible Pay and Reward scheme
  • 118 employees making and selling 20% more product
  • Product defect levels of less than 1%
  • Supply chain and product production geared to customer demand cycle

Benefits :- Achieved 4% Return on Sales within 12 months and achieved a sustainable 12% within 18 months. Cash flow healthily positive.

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