2. 2
the
CLIENT
Turn Works, LLC is a company that focuses on leading operational turnaround efforts and crisis and interim management
engagements. Turn Works enlisted the support of Amelioration Incorporated to support a mid-sized manufacturing
company in achieving its goals for achieving a new balanced plant layout that incorporates additional operational
efficiencies through the application of Kaizen/Lean process improvement. The target company consisted of 74
employees and had roughly $25M in gross annual sales.
the
CHALLENGES
Prior to engaging Amelioration Incorporated, Turn Works had been tasked by a private equity firm to
evaluate the necessity of acquiring additional facilities (at a significant cost) in order for the target company
to expand to meet their increasing demand. Such expansion, if not warranted, would represent an
unnecessary capital expenditure and adverse impact to shareholder equity. Therefore, the private equity
firm sought to fully explore maximizing the efficiency of operations within the current facility in order to
maximize business value. Demand for the target company’s products was growing at a constant 13% per
year and the current demand had already outpaced the current production capability by 9%.
the
SOLUTION
Turn Works, LLC employed Amelioration Incorporated to lead a three-
phased engagement to evaluate the target company’s operations and
make recommendations for improvement:
⇒ Value stream mapping identified the target company’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 the target company’s operations
⇒ Throughput calculations determined the financial
benefit the target company would receive by
implementing each of the recommendations made by
Amelioration Incorporated.
the
BENEFITS
Amelioration Incorporated’s recommendations identified how
the target company could meet increasing demand within the
current facility and dramatically reduce inventory, labor, and
scrap costs.
Conservatively, Amelioration Incorporated’s recommendations
were worth in excess of $2.3M per year in additional net
revenue to the target company, representing an annual return
on total fees and expenses paid in excess of 4,850%.
CaseStudy
the
TOOLS
⇒ Lean Manufacturing
⇒ Value Stream Mapping
⇒ Time Studies
⇒ Theory of Constraints
⇒ Throughput Calculations
⇒ Kaizen
info@ameliorationincorporated.com E-mail
(626) 201-9953 Phone
www.ameliorationincorporated.com Website
