INSIGHTS: WINTER 2016 — CASE STUDY: ARTONE LLC

Company

Artone LLC is a manufacturer of commercial furniture and displays for the hospitality, retail, health care and contract furniture markets. Customers include the Seneca Casinos, DSW Inc., Microtel, Kroger Supermarkets and Disney Animal Kingdom.

Situation

After a severe business downturn in 2009, the company’s sales rebounded strongly over the next several years. It quickly became apparent that the layout and physical limitations of the company’s original 60,000-square-foot manufacturing site would not support their growth. An existing 250,000-square-foot, single-level facility that better fit the company’s long-term needs was found. Management also recognized that developing an effective layout was critical to ensuring their continued growth and increased profitability.

Solution

Insyte Consulting was engaged to work with Artone’s team to develop the optimal layout and workflow for the new facility. The first step was to analyze the product mix, both current and projected. Based on these anticipated volumes, several high-level, block layout diagrams were developed for consideration by the group. Once a consensus was reached, Insyte developed a detailed layout to provide the optimal workflow for both current needs and continued long term growth. The additional space and growing revenues enabled Artone to invest in additional production equipment, allowing them to increase their product offerings. The CooltreeTM line for the health care market was introduced and a steel chair product line was acquired. Purchased with the steel chair line was their manufacturing process that gives the appearance of wood with the strength of steel. Artone also realized significant cost savings due to the elimination of off-site warehousing, as well as improved logistics and material handling. Finally, the new facility enhanced Artone’s image with prospective customers touring the site.

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