More output at lower cost bolsters company’s growth potential in a competitive market
In the year 2000, a leading manufacturer of electric water heaters, in Saudi Arabia, having state-of-the-art highly automated plant, faced a fiercely competitive market; but sensed a large potential to grow – provided it could raise the output from its existing plant and reduce cost.
ABC took up the challenge and, by using Industrial Engineering techniques of Methods Improvement, Line Balancing & Production Standards developed through Work Measurement using Video camera observations and Micro Motion Analysis, helped the
company boost its production substantially within 2 months with 20% lesser manpower. Having identified potential areas for improvement, formulating required changes and preparing a road map for implementation, Consultants left after training Company’s Engineers to carry forward the improvement initiative, preparing a road map for implementation, with the potential to raise productivity three folds.
Production rate of Water Heaters per hour, having increased by 20% in 2 months, could be 40% higher in 6 months
And the higher output was possible with lesser people & without any major capital investment.
Manpower, which came down to 80% in just two months from start of the study, could be reduced to half in 6 months.