Rock Ledge Resources > Industries - Manufacturing > Representative Project - Using Operational Excellence to Drive Revenue

Using Operational Excellence to Drive Revenue

Business Challenge

A small division of a specialty printing company, believed to be enjoying the highest margins in their market segment, had implemented an outstanding Lean project to reduce set-ups on the presses by 80%, creating significant additional capacity, significant increases in image quality and the shortest lead time in the segment. When new revenues began to flow due to these improvements, the front-end processes of customer service/order entry, graphic design and digital imaging had made no improvement and became bogged down in the new order stream. The client was told by customers that the advantages in operations were lost due to problems in the frontend. A reduction from six days to one day for the front-end cycle was identified as necessary to eliminate complaints and provide competitive advantage.

Solution

A principal of Rock Ledge Resources was asked to assess the current situation and provide a recommendation. It was quickly determined that formal processes were absent and the three front-end organizations operated as "silos." Consequently, there was no flow or transparency in the process and no one had visibility to the impact on individual customers from delays. The Rock Ledge Resource principal recommended the establishment of cross-functional teams, each focused on a unique set of customers and led by senior customer service representatives.

Results

The teams were in place four weeks after the engagement of the Rock Ledge principal. A reduction in cycle from six days to two days was achieved in seven working days and a cycle of one day was achieved in 30 days. Subsequently, the teams have demonstrated a capability to process three times the number of orders observed before the team process was implemented. The responsiveness achieved the team process and the Lean improvements in the press room have driven a dramatic increase in revenue, even when the balance of the segment is retrenching.

Relationships: Russ Weybright | Operational Excellence | Manufacturing