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Situation:
A leading supplier of accessories for the
Apple iPod and other personal music players had only
two months to take their operations from capacity that
could support $20 million in sales to an operation that
could support $80 million. The supplier operated in
a product category where the business changed on a daily
basis requiring the operations and staff to be able
to turn-on-a-dime to respond to daily change. This hot
start-up company needed to revamp processes and increase
the performance of an existing staff without sacrificing
the very positive work environment.
If processes were not revamped quickly
and if employee standards of excellence were not raised
quickly, the company would not be able to fill the orders
of a new retail customer and would lose millions of
dollars in terms of the initial order and future orders.
The company also needed someone who could
work with suppliers in Asia to prepare for the high-profile
launch of an electronic product for their newest retail
customers, Target and Circuit City.
The company needed an Interim Vice-President
of Operations who could tackle these immediate challenges,
lead and manage the international supplier relationship
and prepare for the product launch.
Solertis Response:
Solertis CEO, Ann Elliott, was immediately
deployed to work on-site at the client's distribution
facility to fill the role of Interim Vice-President
of Operations.
- Immediate immersion into operations and assessment
of labor utilization, material handling, processes,
etc.
- Assessed staff numbers, competency levels and leadership
potential
- Devised and implemented shift scheduling and attendance
rules
- Set expectations for staff conduct, attitude, and
performance standards without compromising staff morale
or jeopardizing very positive corporate culture.
- Organized tasks to eliminate idle time and reduce
non-value added movements
- Implemented simple, effective productivity tools
and measures
- Scheduled team meetings to discuss productivity
stats
- Identified opportunities for improvement and Best
Practices
- Created and implemented quality control procedures
- Mentored and trained team leaders
- Reviewed and improved cycle count procedures and
data collection tool
- Established tools to quickly capture and measure
key metrics.
- Implemented ongoing safety training
Solertis led and managed all aspects of the reconfiguration
of client's new electronic product in support of launch:
- Fostered relationships and coordinated visit of
two engineers from Taiwan
- Utilized effective communication to insure that
suppliers in Asia delivered critical raw materials
to U.S
- Designed and set up production line for reconfiguration
- Managed supply of products to be reconfigured
- Hired and motivated temporary staff of 18 to work
long shifts and weekends
- Refined and honed and refined and honed processes
- Monitored and reported productivity daily
- Awarded monetary bonuses to high performers who
helped achieve productivity goals
Results:
The company attributed the following results to Solertis'
management and improvement of people and processes.
- The company was able to meet the challenge of increasing
capacity to fill new customers' orders while ramping
up to support growth of 30% - 50%
- Packaging rates increased 30% as measured by units
per labor hour
- Staff was mentored, motivated and trained to perform
at higher levels of excellence and to respond to daily
changes in the business
- The company's hot, new electronic product was successfully
delivered for launch at major retailer
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