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Aluminum Manufacturer

NEEDS-BASED RESULTS

 

Aluminum Manufacturer

SITUATION

Manufacturer of extruded aluminum shapes/profiles facing increased off-shore competition needed to reduce manufacturing and maintenance costs while increasing throughput.

DRIVER GOAL

  • Reduce the cost of production by 10%.
  • Improve throughput volume.

RESULT

  • Reduced cost of production by more than 14.5%.
  • Reduced machine set-up and turnaround time by over 50%.
  • Increased throughput volume by more than 17% the first year.
case study image, CS-159 large

Case Study

Reduce Costs, Improve Throughput & Increase Profits

Issue

A manufacturer of extruded aluminum shapes/profiles facing increased off-shore competition needed to reduce manufacturing and maintenance costs while increasing throughput. The Highland Group was asked to develop and implement a program that would improve the bottom line.

Highland Approach

The Highland Group analyzed the operation and defined and quantified several cost reduction opportunities as well as ways to streamline processes and increase throughput. The team engaged client personnel to apply Lean methods and achieve identified gains. A System For Managing further developed client team ownership of the improvement process, linked high-level goals to shop floor performance and gave leadership visibility to progress.

Actions Taken

  • Identified and rectified the major reasons for scrap, significantly reducing material costs.
  • Determined the most effective purchasing methods.
  • Designed and implemented predefined processes and structure for machine set-up within all the primary aluminum extrusion processes.
  • Developed and installed a tracking system to measure MTBF (mean time between failure) and MTTR (mean time to repair) on major critical assets and used the results to determine the optimum equipment preventive maintenance schedule.
  • Identified and implemented methods to increase productivity for the secondary aluminum extrusion processes.

Reduced cost of production by more than

14.5%

while increasing throughput volume by more than 17% the first year

Related Information

subject matter-based

Project Leader

Manufacturing & Industrial

Joseph is a senior executive with more than 40 years of international industry management and consulting experience, primarily in the areas of process improvement, working capital optimization and operational metrics. Having served in more than 21 countries around Latin America, the Caribbean, the Pacific Rim, and North America, Joseph is skilled at implementing successful and sustainable change programs in culturally diverse environments.