Project Profiles

Scenario 1
Wholesale distributor was constrained in its ability to grow and provide a high level of customer service. Warehouse was running out of space and significant order backlogs and fulfillment process issues existed. Birchwood was brought in to assess and improve the order fulfillment processes and warehouse layout.

Results

• Increased storage space by 36% with small capital expense.
• Increased throughput of orders by 33%, without an increase in staff.
• Created the ability to ship orders the same day received.

Impact
Client can meet current market demand and has the ability to grow revenues by 33-50% while remaining in the existing facility. This enabled the company to reassert its competitive advantage in the marketplace.

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Scenario 2
Production inefficiencies were effecting the profitability and on-time delivery ability of a national provider of co-packing services. Birchwood worked with their management and front-line staff to develop streamlined work methods, reconfigure workstations, and train the supervisory staff in basic process improvement techniques for a job shop environment.

Results

• Increased bottom-line operating margin by 10%
• Improved throughput capacity by 35%.
• Increased productivity while maintaining quality levels.
• Decreased direct-labor cost per piece by 50% resulting in an immediate payback on Birchwood’s services.
• Identified equipment needs for future growth.

Impact
Client improved its profitability and strategic position in a highly competitive market. Client continues to apply process improvement techniques used on the project to efficiently and more profitably offer new services.

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Scenario 3
A national manufacturing company engaged Birchwood to consolidate current parts order fulfillment processes from across different business units into a new, centralized parts and accessories business line.

Results

• Increased first-year revenues resulting in a significant increase in profitability.
• Eliminated half the steps previously required to process a parts order requiring fewer staff to handle increased orders.
• Established an accurate, cost-controlled inventory via a kanban/pull system and cycle counting.
• Reduced stock-outs and worked to decrease supplier lead times.
• Established key performance measures.
• Created excess capacity to allow client to meet its aggressive growth strategy.
• Provided facility layout recommendations for a future facility.

Impact
Client was able to aggressively market the new business line and quickly establish a reputation for customer service. Client is continuing to consolidate parts fulfillment of other product lines into the new business line in a turn-key manner. Continuation of current revenue and profit growth is expected.

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Scenario 4
A large specialty manufacturer of construction products asked for Birchwood’s assistance in addressing breakdowns in scheduling and communication processes across departments. The resulting production delays were beginning to affect on-time deliveries, customer satisfaction, employee morale, and the ability to handle increased customer demand.

Results

• Brought scheduling and communication processes under control quickly.
• Implemented a software module and real-time data collection via RF-handheld devices.
• Developed a process framework that improved cross-department collaboration and timely sharing of design data.

Impact
Client was to identify scheduling inconsistencies and delays early so proactive steps could be taken to keep design and production timelines on track. Production delays were significantly decreased and production capacity was then available to meet increasing customer demand.

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Scenario 5
Large durable goods manufacturer was experiencing significant delays in processing customer returns and requests for credit. Also, they needed to collect quality information on return and production scrap to guide quality improvement efforts. Birchwood assisted the client by assessing and improving the customer returns/credit process, the collection and reporting of quality data, and the vendor return/credit process.

Results

• Implemented a web-based returns/credit request process.
• Reduced losses due to duplicate credits and unqualified credits.
• Improved time to process legitimate credits by 70%.
• Streamlined the process of handling returned materials.
• Initiated the use of handheld devices to capture shop-floor quality data.
• Reduced overall staff time involved in addressing external and internal quality issues.
• Initiated a more pro-active relationship with vendors regarding quality.

Impact
Client improved relations with distributors, reduced expenses, and continues to use the collected quality data to improve its product. Client has improved its market position through such efforts.

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