Using Lean Principles to increase sales by 20% year over year.
The Situation
PPL Biomechanics has been a trusted resource for Healthcare Professionals seeking Preventative and Therapeutic Solutions to maintain and improve people’s mobility and daily lives for the last 25 years.
The business operates from a small factory (c. 6000 sq. ft.) which means optimisation is important for overall business performance. The introduction of COVID-19 restrictions in 2020 made this a critical issue.
Pembroke Alliance was commissioned to introduce Lean Principles and bring attention to key performance indicators such as Overall Equipment Effectiveness (OEE).
A Quote from the Client
“We were very impressed at how quickly we started to see results. We weren’t sure if Lean was for us but now its an integral part of how we operate our business”
The Objectives & Challenges
The main objectives of the programme were to concentrate on:-
Implementing a Change Management Culture
Overcoming staff skepticism
Creating meaningful KPIs
Gaining consistency across all 5 production areas
Covid-19 impact on day-to-day operations
To achieve these objectives we took the following approach:-
5S - using improved training of 5S principles
Standardisation work practices
Staff engagement – improved communication and training
Accountability – better understanding of metrics and owning results
Clear objectives e.g. additional 40 units per week = €200k per annum opportunity in sales
The Outcomes
The following outcomes were achieved:-
Significant improvement of 20% in OEE (based on the available run time)
Sales Growth (based on Q4 2020 rolling 12 mths) = +20%
Reduced lead times, improved capacity, reduced waste.
Improved visual metrics so everyone at every level is working off the same KPIs
The business now thinking more strategically as well as operationally on how to continue to improve
New business opportunities Post Brexit – both in Traded and Custom products for export