Continuous improvement utilising the benchmark tool

About the company

Company C is a global electronics assembler. Within a labour intensive operation, the firm has a constant focus on improving productivity and quality in order to remain competitive against countries with lower wage rates.

Result

Improvement practices in place

Executive summary

Company C undertakes an annual benchmark which forms a critical part of their strategy. The benchmark creates the opportunity to take a look at overall performance in recent years and thereby assists with identifying areas that require specific attention to overcome challenges, improve costs and reduce waste.

Challenges

2014 was a difficult year for Company C as a result of significant sales pressures with the volume reduction from OEMs. The company has developed a separate department to prepare for the change in production output and consequently contribution margin was put under pressure.

How the benchmark helped

B&M Analysts undertook a benchmark which assisted the local organisation to identify a certain area within the operation that required serious attention in order to create more cohesion and flow in order to navigate turbulent conditions.

Results and future plans

Targeted waste reduction, improved linkages to service departments and continuous improvement practices will be focused on to provide a platform for improvement.