Manufacturing - Power Tools/Residential Construction

Industry

Manufacturing – Power Tools / Residential Construction

Size

$500 Million

Expertise

Performance Improvement and Cost Management

Assignment

The Company faced severe price competition from Competitors who had relocated product assembly offshore. Over time, the company’s continuous improvement culture had grown complacent. The assignment was to identify and deliver a best cost assembly operation as well as improve internal manufacturing processes.

Actions

A MainStream principal was engaged to start up the company’s inaugural assembly plant in Mexico. The project required site selection and construction, as well as recruitment of a competent staff of manufacturing professionals. Planning for the transition relative to inventory levels was a critical element of the process.

Results

The project was completed in less than one year from ground breaking to finished product delivery. Assembly costs were reduced by nearly 30% and internal defect rates were reduced by over 30%, further enhancing the recognized savings from the project. Stock levels did not drop which eliminated out of stock conditions during the transition; thereby making the project transparent to the company’s customer base.

 

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