Most metalstamping plants function at less than 35% efficiency. Our efficiency studies will determine at what rating your plant is running, as well as show the areas that need improving. The benefits of this is you will have the facts at your disposal to substantiate financial resource allocation and personnel training so as to increase your overall profits. The following figures show the increase in pre-tax profits by increasing by ONLY 1% your plant's efficiency rating:
Current rating |
Change in pre-tax profits from
an increase of 1% in efficiency
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25%
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40.0 %
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35%
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28.5 %
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50%
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20.0 %
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These are substantial numbers when you consider the average profit of a metalstamping plant is 6%.(This figure does not factor in added value features such as subassemblies.)
Our efficiency studies always reveal at least the following two main areas of need:
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Labor productivity |
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Machine and equipment utilization. |
Because these two areas always surface and consequently have the most dramatic effect on profits, we have tailored programs directly at improving them.
Labor Productivity Surveys
Labor productivity surveys (The people side) deals with helping you determine where potential profits are being lost through your employees. We do this through extensive written questionnaires, personnel interviews, and on-site observations that will help to determine attitudes, motivation levels, methodologies, etc. Once surveys are completed and discussed with management, we can work with you to put in place the necessary systems to get the most out of your individuals, teams and ultimately the company. Understanding the labor force, and implementing systems targeted at a company focus as opposed to an individual, will result in huge dividends to your organization's bottom line.
Machine and Equipment Utilization
We survey your machine and equipment to determine if they are being utilized at their full capacity. Most often we see that they are not, or because of their design and use are creating substantial downtime. Our utilization surveys pinpoint where the problems lie and what corrective measures can be implemented to increase your operations efficiency thereby growing your profits.
As a final piece of consulting we offer an analysis of your overall business in order to determine the company's total profit potential. The Financial Survey includes a review of the financial side of your business, such as A/R, A/P, ROA, ROI, etc. We also perform additional surveys and interviews of your other personnel to gather a complete view of your organization as seen through the eyes of your employees. This benefits you because we are able to bring together your thoughts and attitudes with those of your employees and design programs to meet the needs of the entire organization.
Based on the outcome of all the surveys on your personnel, machine and equipment, and/or your overall business, we will provide recommendations and if so desired we can have our team work with you on implementing those recommendations.
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