Manufacturing Company - Case Study
Leadership and communication skills drive measurable results.
Sales were growing, and by that measure business looked good at this mid-sized manufacturing company in Massachusetts. Growth in sales, however, is not the only critical success factor in any business. This company wasn’t shipping enough product each week to meet demand, the manufacturing cost per unit was too high, and they were not delivering on time. The persistent problems in these three key areas were hurting their profitability, so they turned to Leadership Dynamics, Inc. for help.
Leadership Dynamics worked with the CEO and the Vice President of Operations to uncover the core issues holding the company back. Together we determined that the company’s middle managers, from the plant managers through the foremen, did not have the supervisory skills they needed to drive the results the company wanted. Leadership Dynamics facilitated weekly 2-hour training sessions over a nine-week period to provide the managers with the necessary leadership and communication skills to achieve results through their most valuable asset - their people. We helped them develop and track specific, measurable goals in each of the areas needing improvement. The goals included the following:
Ship $500,000 of product per week;
Reduce the cost per manufactured unit from 58 cents to 50 cents;
Increase on-time delivery from 75% to 85%.
Only three weeks into the LDI nine-week program, shipments were up to $700,000, and they eventually went as high as $900,000 in one week – more than the company had ever shipped, and with fewer people! By the end of the program, they had achieved the following results:
Cost per manufactured unit went from 58 cents to 48 cents;
On-time delivery went from 75% to 88%;
Scrap was reduced by $300,000.
The company has sustained these results, and they have introduced the Leadership Dynamics process to customer service, accounting, and other support functions in the company with equal success.
For twenty-five years we have demonstrated that improved leadership, communication, and organizational skills drive measurable results. Contact Leadership Dynamics, Inc. to learn how you can experience similar results in your organization here.