SMTA International Conference Proceedings


Author: Dave Cesar; Roy Starks
Company: The Parkland Group; Libra Industries
Date Published: 10/24/2010   Conference: SMTA International

Abstract: Business and economic conditions continue to force business managers to seek out improvements and efficiencies. Customers are demanding more, competition is aggressive, and operational speed and flexibility are now as important to customers as technology and quality. Some managers have implemented Kaizen, 5-S programs, Six Sigma, and lean manufacturing for improvements. Industry leaders are at the next step, looking beyond the factory floor for a competitive business edge.

The information in this paper is from a business turnaround initiative at a tier three contract manufacturer. The management team selected an outside resource to analyze existing business processes, implement changes, and identify the proper management metrics to achieve the next level of performance. Some of the benefits included increased monthly shipments by more than 25%, an employee wide gain-sharing bonus program, a dashboard of Key Performance Indicators (KPI) , and a framework to grow sales and sustainable profitability improvements at the Company.

The objective of this paper is to describe the process of business reinventing which started with the realization that outside help was necessary (Who). Next, select an expert driven methodology to identify which processes to fix (How). Then, determine the necessary changes to be made (What). And finally, establish the specific metrics that would be used to measure success (Why).

The reader will benefit from an understanding of how a tier three contract manufacturer reinvented at a business level and looked beyond just the factory floor for a competitive business edge.

Key words: Strategy and Vision, Organization and Culture, Accounting and Finance, Responsiveness and Execution.

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