References provided on request.
Note: Short duration projects normally mean 10 to 20 days over 3 to 6 months)
The size of the company and its sales (turnover) will have a direct impact on the amount of savings possible and often makes the improvement content more critical.
Normally around 10% of sales is achievable for first time improvements.
For example, in one company, a significant bottleneck was identified and improved at minimum cost with a cash saving of £75K for one machine. The company was able to apply the same improvements to two other production lines. This was only part of an improvement project.
The company profitability increased by around 12%. (Client's figures)
In another company, a 20-day improvement project saved the company £300K. (Client's figures)
In another, an obsrvation made during a sales visit increased profits by 7%. (Company's own figures.)
I have withheld company names to respect their confidentiality.
Project Outcomes: Saved manhours, increased productivity, improved quality, reduced defects and scrap...
Savings can be complicated to measure but easier to estimate. In most cases, productivity improvements can be converted to manhours and then to a cash equivalent. Defects and scrap have a manhours content in addition to the materials component.
If new product can be made - and sold - then the added product can also be counted.
The degree of success reflects the commitment of the company to support and maintain the new processes.
Savings should be annualised to standardise the benefits and show the savings from repeat problems.
Often the saving can be non-financial: improved culture, morale or safety, which have a hidden financial value.
An avearge "saving" per project has been calculated to be around £15K per consulant day (often more) - although the project has lasted longer.
|Company Type Worked With|
|Life Science Companies|
|Waste Paper Recycler|
|Major Drinks Manufacturers|
|Infirm Patient Support Systems|
|Windows & Doors Manufacturer|
|Electronic Valve Manufacturer|
|Mining Controls and Power Supplies|
|Electronics components supplier/warehouse|
|Underfloor Heating Manufacturer|
|A Premier Food Manufacturer|
The implementation of Total Productive Maintenance and Reliability Centred Maintenance.
We made huge savings. From a plant scheduled to be sold, the parent company decided not to sell.
My book Total Productive Maintenance is based on the successful implementation.