Carron Phoenix are reaping the benefits from SMAS involvement with the first stages of Lean implementation seeing a 32% increase in productivity.
The Challenge
Profits at Carron Phoenix had been in decline due to the affect of the economic climate on the kitchen sinks market, meaning that the company had come under increasing pressure from parent company Franke to improve efficiency and operate more competitively.
Working practices and workplace organisation at Carron were outdated and major improvements were needed to reduce costs. These changes would allow the company to operate more competitively.
The Company
Carron Phoenix is a manufacturer of stainless steel and composite sinks, as well as tap and waste products.
The company's headquarters and factory in Carron employs 300 people, manufacturing sinks for the domestic market - as well as internally to parent company Franke.
They have traded for over 250 years, surviving various product diversification periods, and currently boast turnover in the region of £40 million.
How SMAS Helped
A steering group meeting between Carron Phoenix staff and SMAS practitioners outlined a number of areas requiring attention.
Initial work focused on transforming a pilot area - eliminating waste using Lean methods through utilising the "5S" workplace organisation approach.
At the same time, working practices were reviewed, with a number of proposals from the workforce studied both by Carron and SMAS. Both parties worked together to facilitate a plan of action that would lead to lasting changes.
Key Outcomes
The pilot area, Moulding Bay 3, was completely transformed and productivity improved by more than 32%.
Furthermore, the scrap rate within the area was halved - generating significant cost savings.
Simon explained: "The improvements in operational efficiency have helped to lower our costs, which has supported the winning of new contracts with customers such as Focus DIY.
"In this competitive market, production cost and service are key to attracting high-quality, high street customers."
Simon continued: "As well as the hard benefits of efficiency and flexibility, SMAS has helped move forward our company culture by encouraging greater workforce participation in problem solving and development. SMAS is fairly unique, in that they put our staff at the centre of solutions, rather than making their own recommendations to management.
"I do not believe there are many small or medium-sized companies in Scotland who would not benefit from SMAS support."
He concluded:
I have already recommended SMAS to other production businesses and will continue to do so.
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