EXCELCO/NEWBROOK

Lean Accelerates Profitability

 

"The effectiveness of lean manufacturing has enabled us to gain a significant competitive advantage, which will enable us to maintain future sales growth and increased profitability." - Chris Lanski, President

> RESULTS

  • Grew sales 85% over two years.
  • Improved net operating margin by 50%.
  • Increased shop efficiencies by 60%.
  • Improved on-time delivery by 20 percentiles.
  • Doubled quotation hit rate to 50%.
  • Grew employment by 20%.

> COMPANY

Excelco/Newbrook, Inc., located in Silver Creek NY, is a supplier to defense contractors for undersea naval applications.

> SITUATION

Although Excelco/Newbrook had maintained consistent growth and profitability, a major change in customer buying practices threatened their competitiveness. Their projects typically lasted about 24 months. However, a sudden, dramatic change to multiple, smaller orders with 16-week lead times became the norm. Excelco/Newbrook was not prepared to meet this new demand. Senior management realized that they faced challenges at every point in their value chain including engineering, order planning, materials management, production and shipping.

> SOLUTION

Excelco/Newbrook turned to Insyte Consulting for help and a two-phase project ensued. In Phase One, a value stream mapping exercise (both current and future states) was completed. Based on the maps' results, workplace organization (5S) and setup reduction initiatives were launched in the production areas to achieve the desired future state. Throughput increased immediately from the use of tool cribs and racks, visual controls and reductions in machine setup times.

Phase Two focused on streamlining engineering processes including quoting, estimating and project planning. Insyte installed a cellular layout in engineering office, enabling individuals to work as a team for quotations. A prioritization procedure was created to assess potential quotes based on value and likelihood of success. These changes allowed Excelco/Newbrook to reduce their quotation volume and lead times, while increasing their hit rate and overall revenue.

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