| Client
Profile:
Hydro Carbide Retains Sales in a Tough Market
Hydro Carbide is a leading supplier of pre-formed tungsten carbide compositions for a wide variety of markets. They manufacture tungsten carbide rod, die parts, rolls, and other products for the metalworking market. The Gulfport, MS plant employs approximately 100 people and produces carbide rods for the aerospace and automotive industries.
Situation:
The Gulfport plant faced increasing pressure from the changing automotive and aerospace industries. The economic downturn also made matters worse. The company was struggling to hold onto its market share and needed ways to cut costs and maintain their customer base. MEP.ms contacted this company to perform an assessment during the aftermath of Hurricane Katrina to determine their specific manufacturing needs. The assessment revealed their need for the Principles of Lean 101 Manufacturing.
Solution:
The MEP.ms Center at the University Of Southern Mississippi’s Lean Enterprise Center (USM LEC) facilitated Principles of Lean Manufacturing workshops for the supervisors and shop floor employees. The MEP.ms Center at USM LEC along with the Hydro Carbide management began looking at specific issues on the factory floor and determined that excessive machine changeover times were a major constraint impacting lead times, customer deliveries, and inventory levels. The MEP.ms Center at USM LEC then facilitated Set-up Reduction training and performed associated Kaizen events on specific machines throughout the plant. The training and implementation of Set-up reduction techniques allowed the personnel to have more time to focus on value-adding activities. Lead times were also reduced which increased on-time deliveries to customers.
Results:
The financial results were impressive. The dollar amount of sales that were retained was $5,000,000.00. These improvements also resulted in a cost savings of $322,000.00 and there was an investment of plant equipment of $150,000.00.
Testimonial:
“Implementing the Lean initiatives allowed us to keep our current level of business without having any cutbacks.”
Gary Dale, Plant Manager
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