Cost Of Sales: Taylor Bins
"During the project, we've made the company ready for investment - the team has seen this, and it has lifted morale. Our new Process Engineer (full time improvement leader) is seen as a really positive addition". - Tony Nunn, General Manager
Industry
Metal waste and recycling containers
Support Level
2 consultants, 3 months
Objective
Increase capacity, avoid additional costs for customers and implement a lasting legacy of ongoing improvement
Results
- An unprecedented step change in capacity
- Reductions in labour and waste costs which allowed for investment in new tooling and put a limit on costs for customers
- Full time process engineer hired
Why was chartwell brought on board?
Taylor, a strong business with a high profile presence in the UK waste container market was recently acquired by a private equity company. They wished to reduce cost of sales to enable re-investment in the business, with the ultimate aim of being able to produce a wider range of products and serve an increasingly global market opportunity.
An initial assessment by Chartwell focused the improvement efforts on two areas of the business:
- Increasing capacity in Finishing (new container painting and finishing) by 30 % to 40 %, without a corresponding increase in cost of manufacture
- Increase plastic lid manufacturing efficiency and reduce polymer waste to significantly lower the production costs whilst keeping output stable
Results of the 3 month Project
"We've invested in five new tools in roto-moulding , and have a process in place for refurbishment of our other tools. The team has rightly been asking for years for these to be replaced. Now having made improvements we are in a position where we can reinvest savings back into the business and it is great to see the ownership the team has taken now their concerns have been listened to". - Tony Nunn, General Manager.
Finishing
- Capacity has increased 30 % to 40 %
- Substantial cost savings by reducing the requirement for overtime
Roto-moulding
- A 30 % increase in capacity has created space for other products
- Productivity improvements
- Reduced polymer waste, saving money with a sustainability benefit