Increase Profits
Continuous Improvement with Lean
Cycle Time Management has helped companies increase pretax profits up to 27 fold. In the last three decades it has become clear that the elimination of waste, or non-value added activity, has freed business to increase profit margins drastically. In the case of Mott Manufacturing, once the CTM evolution plan was successfully implemented, the firm experienced extraordinary increases in sales, which in turn generated greater profits.
Mott Manufacturing Case Study
Revenue increase during CTM collaboration
Pretax profit increased from 2% of sales to 13%. (from $140,000 to 3.9 million)
Mott began manufacturing steel laboratory furniture in 1961 and by 1994 over 90% of its $6.3 million sales involved steel laboratory furniture sold to one dealer who installed laboratories primarily in Canada. Today, the company’s customer and market base has shifted significantly with approximately 70% of its $32 million sales being sold to US dealers who install Mott’s Sigma Systems™ product line. The 30% balance of the company’s sales are to MottLAB, Mott’s Canadian dealer, of which Mott holds a two thirds equity interest. MottLAB was incorporated in 1997; since then it has established itself as the major laboratory furniture dealer in the Canadian market. While Mott had a limited reputation and no brand recognition in the Canadian and US markets in 1996, it has become the major source of steel laboratory furniture in Canada and the third largest source, through it US dealers, in the US market.
it has become the major source of steel laboratory furniture in Canada and the third largest source, through it US dealers, in the US market.
The reorganized distribution network and the revitalized product offering have resulted in Mott’s consolidated sales (Mott and MottLAB) increasing approximately 4.4 times from $7.2 million to $32 million in the past eight years. Pretax profit has moved from 2% of sales to 13% which is PTL from $140,000 to $3,900,000. A 27 fold increase. This growth was realized, in part, by adhering to the CTM 12 Step principles, practices and procedures implemented at Mott. Mott relocated to its new 102,000 square foot manufacturing and office facility in April 2003 – this would never have been done if it were not for CTM and cycle time.
this would never have been done if it were not for CTM and cycle time.
The new plant layout and setup followed the CTM Lean Manufacturing Methodology utilizing cell and continuous flow. Employee empowerment, quick change over, quality at source and a total focus on the customer are just a few of the Lean Manufacturing Tools that have made the Mott plant a state-of-the-art facility.
Learn more by reading through the entire case study
Generating more value through Lean
Here are some keys to success:
Avoid silos
The biggest workflow inefficiencies usually occur across organizational boundaries. That’s why lean initiatives need to involve more than one department. Projects that are limited to a single silo generally miss out on the best improvement opportunities.
Put training to work
It’s easy to get excited about lean and immediately launch into an enterprise-wide training program. But the initial excitement and knowledge can quickly wear off if not immediately put into practice. The most successful lean initiatives carefully coordinate training with implementation. Don’t just train people for the sake of training them – put the training to work.
Focus on process improvements, not inventory
Many companies are obsessed with reducing inventory. And while that’s an admirable goal, excessive inventory is really just a symptom of a much deeper problem. Focus on streamlining and improving processes and workflow, and your inventory problems will take care of themselves.
Start smart
Companies used to rely on gut feel in deciding where to begin their lean initiative. But now, there’s a better way. Over the years, advanced simulation tools have been developed to quickly identify and evaluate the best opportunities. These tools can show you where to begin – and what benefits to expect.
Get the right data
Lean improvements are driven by data, but in many cases the necessary data doesn’t exist. Companies have a lot of data, but often it’s not the right data. Not to worry. In recent years, technology companies have invested a lot of time and money into developing tools that make it easy to gather the data you need. In most cases, a simple data collection device/add-on box can instantly turn an ordinary machine into a smart machine.
Bottom-line Benefits
- Increase product and service quality
- Boost efficiency and responsiveness
- Sustain competitiveness
- Continuously improve
Are you ready for lean?
Whether you are new to lean, or want to maintain and enhance your existing initiatives, CTM offers a full range of services to help you stay on track. A lean audit can tell you how you’re current processes stack up, and what kind of return you can expect from your lean investments. It can also help determine if your organization is ready to get started, and provide a detailed implementation plan for making lean a reality.
CTM has helped many firms increase their profits.
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Proven Experience
CTM was incorporated in 1986 and has delivered high quality services to numerous organizations in manufacturing, healthcare, and other industries. Read our clients' success stories.
Learn MoreIndustry Leader
CTM has developed a comprehensive process (The Lean Framework) that allows an organization to create an environment and a means for change. Change that permeates the entire company and becomes a new paradigm for growth.
Learn MoreOptimize Efficiency
Moving from reactive to proactive thinking in the work place. Having the employees understand the importance, scope and techniques involved allowed many clients to move forward at greatly accelerated rates.
Learn MoreMinimize Costs
CTM focuses on five key issues: identifying waste, cellular production, scheduling, production line processes, and production line support. Our process helps firms eliminate all inefficiencies and thrive.
Learn MoreServices
The right training is critical for successful lean performance. CTM will make sure your Lean Training works. See all the services that CTM's Lean Framework offers!
Learn MoreMaximize Productivity
Clients have found CTM’s Lean Assessment approach of key employee interviews, financial review, facility visit and a lean manufacturing evaluation to determining lean implementation requirements has been very effective.
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