Window Manfacturer saves over $300k

window copyBefore: Our client, a family owned windows manufacturer, had successfully grown under the family’s leadership but was suffering as a result of the firm failing to cultivate a new generation of top-quality management. Lacking key human capital, the firm failed to develop and implement procedural disciplines as well as a culture of responsibility and accountability. Although the firm had made a significant investment in an ERP system little return was realized as the system was underutilized and not properly linked with functional areas of the business. The combination of these factors led to excessive inventories, high levels of waste and poorly assigned assets. Additional symptoms of the problems faced by the firm included poor data accuracy, extended lead times, and on-time deliveries below 60%.

After: The MAC Venture consulting team, with the assistance and guidance of the owner, hired a successor in the capacity of COO to eventually lead the company when the owner retires. MVG worked with the newly hired COO to build out a core management team consisting of a VP of Operations and a Director of Material. Job descriptions and quantifiable measures were established for individual job assessment under the guidance of MVG.

Under the guidance of MVG consultants, the ERP system was cleaned up and new formal systems were implemented to maintain all demand requirements and replenishment planning. Additionally, the inventory facilities were relocated and reorganized and space requirements were minimized. Combined, these actions resulted in a more fluid workflow and increased customer delivery times to greater than 95% while lead times were reduced by 30%.

Furthermore, the client’s waste reduction savings amounted to more than $300,000 and sales within the first 12 months of implementing MVG’s plans, the client’s sales increased by over 20%.