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Manufacturer of Precision Sheet Metal Components
Background
The firm is a manufacturer of precision sheet metal components used in
the computer industry. At certification, the firm had 20 employees and
annual sales of approximately $2.8 million.
Increased foreign competition and the firm’s reliance on one customer for 90
percent of sales resulted in shrinking sales and yearly net losses from
operations. To regain profitability, the firm needed to address two areas to
replace lost sales-- technology and marketing.
Assistance Provided
To strengthen its short-term position, the firm wanted to transform the
operations into a "paperless manufacturing" environment and leverage this
strength with the development of a formal marketing plan that would focus on
industry diversification.
To assist the firm on its mission to achieve "paperless manufacturing," the
manual Statistical Process Control (SPC) function needed to be replaced with an
electronic substitute, and the CAD function needed to be upgraded.
It was estimated the firm could incorporate a
totally electronic SPC system on its present computer platform for $30,000 to
$35,000. Additionally, it was estimated the CAD
system could be upgraded for $40,000.
The marketing component would tie all pieces
together into a master plan that would lead to much larger sales volume. Before
increased foreign competition eroded the firm's sales, a formal marketing plan
didn't seem
to be a critical need, but the firm's current business climate made it a
necessity.
Project Results
The firm is very pleased with the results. Sales appear to be the best in the
history of the firm, with revenues exceeding $5 million. The firm is respected
within the industry for its level of quality and technology. It was asked to
partner in a national program sponsored by major OEMs to showcase the talents of
the firm, as well as serve as an example to other small manufacturers that high
technology is within reach for manufacturers of all sizes.
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