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Case Study
Samson Manufacturing Corporation
2
the
CLIENT
Samson Manufacturing Corporation is a mid-sized manufacturing company currently based in Keene, New Hampshire
whose clients include US and international gun manufacturers as well as government military contractors and
purchasers. Samson Manufacturing Corporation was founded in 1994 and has been recognized for almost 20 years as a
high-quality parts supplier to the US military and other private arms manufacturers. At the time of engagement, Samson
Manufacturing Corporation had 39 employees and roughly $6.8M in gross annual revenues.
the
CHALLENGES
Prior to engaging Amelioration Incorporated, Samson Manufacturing Corporation had experienced
dramatic growth. In fact, over the previous year the number of orders for the company’s products had
nearly doubled. While many may deem this “a good problem to have”, the sudden growth in demand left
Samson with several challenges:
1. More than 6,000 orders in backlog, worth roughly $6.4M in additional revenue
2. Roughly $200K/year in cancellations due to lengthy production and delivery timeframes
3. A backlog amortization rate that would have taken more than 4 years to clear the current backlog and
resulted in an estimated $410K in additional cancellation losses.
the
SOLUTION
Samson Manufacturing Corporation employed Amelioration
Incorporated to lead a three-phased engagement to evaluate the
company’s operations and make recommendations for improvement:
⇒ Value stream mapping identified Samson’s key high-
level processes and enabled the identification of value-
added and non-value-added activities
⇒ Time studies identified the bottlenecks and constraints
within Samson’s operations
⇒ Throughput calculations determined the financial
benefit Samson would receive by implementing each of
the recommendations made by Amelioration
Incorporated.
the
BENEFITS
Amelioration Incorporated’s recommendations identified how
Samson could fill twice as many orders per year, double annual
invoiced revenue, and fully reduce the current order backlog in
less than a year.
Conservatively, Amelioration Incorporated’s recommendations
were worth in excess of $316K in net revenue to Samson
Manufacturing Corporation, representing a return on total fees
and expenses paid in excess of 2,700%.
CaseStudy
the
TOOLS
⇒ Lean Manufacturing
⇒ Value Stream Mapping
⇒ Time Studies
⇒ Theory of Constraints
⇒ Throughput Calculations
info@ameliorationincorporated.com E-mail
(626) 201-9953 Phone
www.ameliorationincorporated.com Website

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Samson Manufacturing Case Study (032815)

  • 2. 2 the CLIENT Samson Manufacturing Corporation is a mid-sized manufacturing company currently based in Keene, New Hampshire whose clients include US and international gun manufacturers as well as government military contractors and purchasers. Samson Manufacturing Corporation was founded in 1994 and has been recognized for almost 20 years as a high-quality parts supplier to the US military and other private arms manufacturers. At the time of engagement, Samson Manufacturing Corporation had 39 employees and roughly $6.8M in gross annual revenues. the CHALLENGES Prior to engaging Amelioration Incorporated, Samson Manufacturing Corporation had experienced dramatic growth. In fact, over the previous year the number of orders for the company’s products had nearly doubled. While many may deem this “a good problem to have”, the sudden growth in demand left Samson with several challenges: 1. More than 6,000 orders in backlog, worth roughly $6.4M in additional revenue 2. Roughly $200K/year in cancellations due to lengthy production and delivery timeframes 3. A backlog amortization rate that would have taken more than 4 years to clear the current backlog and resulted in an estimated $410K in additional cancellation losses. the SOLUTION Samson Manufacturing Corporation employed Amelioration Incorporated to lead a three-phased engagement to evaluate the company’s operations and make recommendations for improvement: ⇒ Value stream mapping identified Samson’s key high- level processes and enabled the identification of value- added and non-value-added activities ⇒ Time studies identified the bottlenecks and constraints within Samson’s operations ⇒ Throughput calculations determined the financial benefit Samson would receive by implementing each of the recommendations made by Amelioration Incorporated. the BENEFITS Amelioration Incorporated’s recommendations identified how Samson could fill twice as many orders per year, double annual invoiced revenue, and fully reduce the current order backlog in less than a year. Conservatively, Amelioration Incorporated’s recommendations were worth in excess of $316K in net revenue to Samson Manufacturing Corporation, representing a return on total fees and expenses paid in excess of 2,700%. CaseStudy the TOOLS ⇒ Lean Manufacturing ⇒ Value Stream Mapping ⇒ Time Studies ⇒ Theory of Constraints ⇒ Throughput Calculations info@ameliorationincorporated.com E-mail (626) 201-9953 Phone www.ameliorationincorporated.com Website