Case study · Manufacturing
Energy equipment maker delivers an $18.4M turnaround and doubles productivity
Inaccurate heat-treat records put a custom energy-generation equipment maker under a regulator's enhanced surveillance, with liquidated damages exposure above $300 million. USC closed gaps in its operating system and brought foremen into daily plan-do-check-act supervision.
Results
$18.4M
turnaround, reaching break-even against budget
85%
productivity, up from under 50%
25%
of work in first-of-a-kind status, down from 50%
Schedule performance also rose above 0.95.
The situation
Inaccurate heat-treat records led a national regulator to place the company under enhanced surveillance, liquidated damages exposure exceeded $300 million, and a growth project ran 18 months late.
What the assessment found
- Foremen not working in a plan-do-check-act cycle
- Productivity under 50%
- Half of all work first-of-a-kind
How the work was done
Goals: stabilize first
Set goals to stabilize the business, raise productivity and on-time delivery, and cut cycle time and work in process.
Supervision: plan-do-check-act on the floor
Closed gaps in the management operating system and engaged foremen and associates in plan-do-check-act supervision.
85%
productivity, up from under 50%
First-of-a-kind: manage the work
Introduced a new process to manage first-of-a-kind work.
25%
of work first-of-a-kind, down from 50%
Lasting impact
Liquidated damages exposure fell, the business returned to break-even against budget, and the company won new business.
Related case studies
Manufacturing
Control systems maker adds $1.5M annual revenue, cuts labor cost per job 51%
$1.5Mincrease in annual revenue
Read the case study →Manufacturing
Pulp and paper maker cuts bleach chemical costs $2M a year at one mill
$2Min annual bleach chemical savings at one mill
Read the case study →Manufacturing
PE firm's manufacturing holding cuts $6M a year and creates $36M in value
$6Min annualized cost savings
Read the case study →