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Case Studies

Case #1 Tarp Manufacturer

Participating Company Profile:The manufacturer is the leading supplier of tarp systems to the trucking industry in the USA and is a family owned business with 270 employees and annual revenues of around $28m. Patents on one of their main product lines had expired and they were faced with increasing competition in an area where they had once had 100% of the market share.

Number of Program Participants: 32

Key Objectives:

1. Increase throughput that results in increased profitability

2. Improve material cost/handling in order to increase profitability

3. Improve corporate health & employee wellness in order to increase profitability and make it a great place to work.

Measurable Outcome Summary:

  • Over 90 improvement ideas were implemented, for example:

o $700 per annum saving on the stocking system used to ensure the constant availability of stainless steel D rings

o $466,000 per annum saving by having a component for one of their product lines painted instead of anodized.

  • Total first year savings of 1.394 million with benefits repeating in subsequent years

The company president said, “Measurable Management™ has crossed a lot of lines and whereas I thought we would see a lot of improvements in the manufacturing area we also saw improvements that saved a lot of dollars in areas such as Accounts Receivable, Human Resources, Quality Assurance and Engineering. I personally would recommend Measurable Management™ to any organization, Manufacturing or Service, who wants to take their business from where it is now to wherever it wants to go”.

Case #2 City Government

Participating Company Profile: City Government (est. pop of 12,000)Number of Program Participants: 12

Key Objectives:

1. Revenue: Increase revenue by increasing utilization of city facilities and services through improved promotion, quality of service and enhanced user experiences.

2. Cost Reduction: Reduce costs by maximizing the use of existing resources, elimination of waste and reduction of reliance on paper processes and manual procedures.

3. Economic Development: Enhance economic development opportunities through increased awareness and participation by involving all facets of city operations.

4. Citizen Satisfaction: Make the city a better place to live, to work and to do business through continuous improvement in communication, interaction, and service by all facets of city government.

Measurable Outcome Summary:

  • Implemented thirty-two (32) ideas for action with a first year savings to the city of (net of implementation) $524,400.
  • Assuming a typical “life span” of five years for improvement projects implemented, the potential savings for the city (net of implementation) is $2,622,000.

“The program was designed to have everyone stop and think how they’re doing things,” said the City Administrator. “For department heads to see how they can save money and improve community services. Adopting new ideas that are practical, tangible and achievable, should not be limited to the private sector. These things can be done as an overall benefit to an entire community.”

Case #3 Direct Mail Company

Participating Company Profile: Full service direct mail and fulfillment company with two facilities and over 500,000 sq. feet of office and warehouse space.Number of Program Participants: 15

Key Objectives:

1. Eliminate Customer Credits

2. Document processes to facilitate training

3. Eliminate duplicate processing

4. Ability to respond positively to customer asking about improvement programs

Measurable Outcome Summary:

Location #1:

  • Implemented nine (9) ideas for action with a first year savings of $330,624.
  • Quantified another ten (10) ideas for action worth $736,775 in first year savings following implementation.
  • Total savings $1,067,399

Location #2:

  • Implemented fourteen (14) ideas for action with a first year savings of $143,425.
  • Quantified another seven (7) ideas for action worth $166,792 in first year savings following implementation.
  • Total savings: $310,217

Combined:

  • Implemented twenty-three (23) ideas for action with first years savings of $474,049.
  • Quantified seventeen (17) additional ideas for action worth $903,567 in first year savings following implementation
  • Combined savings: $1,377,616.

Case #4 Engineering & Manufacturing

Participating Company Profile: Engineering and manufacturing corporation with five plantsNumber of Program Participants: 12

Key Objectives:

1. Revenue Enhancement: reduce downtimes, increase efficiency

2. Expenditure Reduction: cost reduction associated with materials and supplies

3. Process Improvements: reduce tooling, reduce set-up time, improve product quality

Measurable Outcome Summary:

  • Implemented twenty seven (27) ideas for action yielding a $528,680 first year savings.

Case #5 Printing & Mailing Solutions Company

Participating Company Profile: Printing and mailing solutions companyNumber of Program Participants: 5

Key Objectives:

1. Develop and indentify key measurable management tools

2. Develop tools and products to enhance targeted business development (web-based and products)

3. Improve and measure quality

4. Reposition company from service provider to solution provider

Measurable Outcome Summary:

The results of the Measurable Management™ program were not only in the numbers but also in the positive cultural shifts within the organization. The participating company has seen strong evidence in both the numbers and in the cultural changes that its desire for a quality improvement program has been achieved.

  • Implemented ideas for action with a first year savings of $491,777.
  • Quantified additional ideas for action worth $333,780 in first year savings following implementation.
  • Total savings $825,557

Case #6 City Fire Department

Participating Company Profile: City Fire DepartmentNumber of Program Participants: 18

Key Objectives:

1) Working towards accreditation with the Commission on Fire Accreditation International

2) Increase overall safety, health, wellness and fitness level of department personnel

3) Developing a fire officer growth and improvement program

4) Improve the evaluation and marketing of fire protection services

Measurable Outcome Summary:

  • Implemented fifty-four (54) ideas for action including:

o Improvements to the telephone and voicemail system

o Shift change communications

o Establishment of a fire prevention advisory committee

o Emergency scene accountability and safety

o Knox Box key color coding system

o Establishment of a fire inspector position, etc.

Case #7 Hospital

Participating Company Profile: Health system with more than 20 sites of care, serving communities from a 70-mile radius in Iowa, Nebraska and South Dakota.Number of Program Participants: 14

Key Objectives:

1) Improve patient flow on 1st Floor

2) Increase customer satisfaction

3) Improved productivity/profitability

Measurable Outcome Summary:

The participants implemented 24 projects in several different areas of the hospital including: Admissions, Ambulatory Services/Infusion Center, Cardiology, Customer Service, Diagnostic/Imaging Services, Fiscal Services, In-Patient Care, Laboratory, Emergency Room, Outpatient/Surgical Services and Radiology.

  • Annualized monetary improvements from projects implemented ranged from $4,615 (Laboratory) to $1,180,000 (Admissions).
  • Total measurable improvements were $1,313,846 annually
  • Assuming a typical “life span” of five years for such improvements, the potential savings and increased revenue is in excess of $6.5 million.
  • Other improvement projects resulted in:

o Increased customer satisfaction and improved productivity in the areas of Diagnostic/Imaging and Admissions, Cardiology, In-Patient Care, Laboratory and Radiology

o Improved patient safety and compliance requirements in the areas of Diagnostic/Imaging Services, Emergency Room and Outpatient/Surgical Services

o Met certification requirements/compliance in several areas.

Case #8 Restaurant

Participating Company Profile: Restaurant and catering businessNumber of Program Participants: 10

Key Objectives:

1) Profits every month

2) Increase dollars spent per customer

3) Increase restaurant and catering sales

4) Cut costs while maintaining quality

Measurable Outcome Summary:

Their first and second round of Ideas for Action resulted in $325,000 in dollars returned back to the business in the form of revenue-generating initiatives or cost containment. Some of the ideas implemented by participants:

  • Brand awareness to additional segment of market-$ 45,000
  • Re-engineered kitchen processes-$12,000
  • Created incentives for wait staff to up-sell to customers-$50,000
  • Improved vendor relations resulting in an additional-$80,000 in savings or support for special events

Case Study #9 Building Products, Inc.

Building Products Inc. is a supplier of building materials to lumber yards across the Midwest. They buy from manufacturers and sell a complete range of building products that any construction company would need to build a home or commercial building. The company has implemented Measurable Management™ in both of their key locations in Sioux Falls, SD and Waterloo, IA.In 2008, in a market with the number of new homes in sharp decline, numerous manufacturers have reported drops in the demand for their products as much as 30 to 50%. In this very same downward cycle, Building Products Inc. has achieved record sales and has done so without increasing costs.What is it that has made this incredible success story possible?

A survey of customers revealed that Building Products Inc. significantly outperformed their competitors in customer service. The speed, frequency and accuracy of deliveries have been a deciding factor in choosing Building Products Inc. as their preferred supplier. One customer was quoted as saying, “They are like my own personal warehouse”. Lee Schull, President of Building Products, is quick to point out that Measurable Management™ has played a significant role in developing a workforce that is both customer-focused and financially aware.

Chris Fischer, the General Manager of the Sioux Falls location said, “I hear our people, on a regular basis, give credit to Measurable Management™ for the improvements that they have implemented”.

Building Product’s results are one more example that Measurable Management™ is an excellent vehicle for delivering measurable improvements and a remarkably successful approach to changing attitudes and culture within an organization.

The best consultants an organization can have already work for them. Measurable Management™ facilitates that expertise into customer-focused improvements that impact the bottom line in a way that is simple, yet powerful.

Key Business Organization Concepts