Current Project Results

Blueprint Consulting has been working with an Irish subsidiary SME manufacturer since 2009.

The subsidiary had struggled for a number of years to achieve a reasonable level of profitability despite a number of additional investments. The parent company was beginning to query the ongoing viability of the facility.

Our programme is initially focusing on improving the company’s gross margin and the practices implemented since the start of the programme begun to translate into substantially improved financial results from Feb/Mar last year (2009).

There has been a substantial improvement in the company’s production efficiencies and this is reflected in the direct labour to output ratio, which has improved from 35% to 27%. This has been achieved despite having to reduce capacity in light of falling sales. 

Manufacturing waste has been reduced substantially (estimated 60% reduction). Production cycle times are falling significantly and the company’s ability to deliver complete orders on time is improving as a result (currently running at 86% from a base of 64%).

Management's and shop floor operatives' attitude to quality is much more rigorous than it was before the commencement of the programme - sub standard raw materials are no longer accepted from suppliers and the root cause of quality issues are being  adressed as opposed to hidden. Complaints, reject and rework levels are falling as a consequence.

Order completion rates are also improving due to improved production planning (currently running at 95%).

All improvements have being achieved through adapting "LEAN" and best practice techniques appropriate to the company's  stage of development. There is constructive engagement with shop floor operatives, team leaders and production managers and there is ongoing feedback regarding goals and performance.

“LEAN” management practices and “best practices” utilised to date to enable the facility to achieve the improved results include:

  • Financial imperatives outlined to all employees.
  • Agreed overall output goals & goals by shop floor cell established.
  • Measurement systems for each cell/team to highlight issues and obstacles.
  • Ongoing performance reviews & problem solving with shop floor teams.
  • Visualising of results on team boards.
  • Coherent production planning & loading v capacity.
  • Revised shopfloor layout & improved production flow.
  • Recognition of WIP as “waste” – reduction in levels.
  • Ongoing identification of non value added activities throughout process.

The programme has more than paid for itself and the annualised return on investment on programme completion will be substantial.