Operational Excellence Spurs Growth
Tom Rybicki, Director of Manufacturing
Because Insyte Consulting understood our internal issues as well as our corporate goals and strategic direction, they were able to effectively work with us to implement a lean manufacturing program that met our specific needs and contributed to the continued success of the business.
Polymer Conversions Inc. (PCI), located in Orchard Park, N.Y., is a manufacturer of injection molded components for a variety of OEM applications in the medical, electronics, automotive and industrial markets.
Despite steady growth and an apparently strong competitive position, PCI’s senior management was surprised at the results of an industry benchmarking study that indicated below par performance in regard to inventory turns, process scrap and overall profitability. Upon further internal evaluation, management also identified deficiencies in production flow, excessive material handling and difficulty reacting to spikes in customer demand.
PCI approached Insyte Consulting to develop a solution to these issues. Insyte recommended implementing lean manufacturing. Insyte led PCI in the development of current and future state value stream maps of the entire organization. Based on these maps, PCI and Insyte identified appropriate lean manufacturing tools and developed prioritized action plans for each of the major product lines. Cross-functional teams of six-eight members were established for work place organization (5S), set up reduction, cellular flow and pull systems (Kan Ban). Insyte provided training and orientation so the teams could then introduce these concepts into selected production and support areas. Next the teams worked with the entire employee base to extend these improvements throughout the organization. PCI identified and posted key performance metrics to track and manage performance organization-wide. The initiative was quickly embraced by all levels of PCI resulting in a dramatic cultural change and significant performance improvements.
35% annual sales growth.
22% increase in net profit before tax.
Five new accounts added.
20% reduction in lead time.
99.3% on-time delivery.
20% scrap reduction.
More than $100,000 in annualized cost savings.
68% reduction in required warehouse space.
More than $2 million in capital expenditures avoided.