At a mid-market metal decorating company serving Automotive, Appliance, and Heavy Truck industries, it was a major challenge to fight margin compression pressure from customers wanting price givebacks and suppliers wanting price increases, while employees also expected and deserved year-on-year wage increases.
- Established an annual, structured Continuous Improvement Program where each of 7 plants would develop specific cost reductions as part of the annual business planning process.
- Cost reductions could come from a variety of initiatives including lean manufacturing events, employee suggestions, purchasing cost-downs, etc.
- The process included reviews of ideas on-site, and at an aggregate level, before being approved as part of the annual operating budgets.
- Systematic reviews of progress toward the initiatives were also implemented to ensure execution throughout the year.
Over the course of 2 years the Continuous Improvement Program yielded multi-million dollars of savings straight to the bottom line of this family-owned and operated business. And it is now a regular process - part of the repeatable management systems and structure that will sustain the company for years to come.