PENINSULAR CYLINDER CO: On Course For Success
The experts from the Michigan Manufacturing Technology Center are effective in getting the results you want. I would recommend them to any company that needs assistance with improving performance.
-- Henry (Bud) Haver
General Manager
Peninsular Cylinder Co. (www.peninsularcylinders.com), a subsidiary of Avis Industrial Corporation, is an ISO 9001-certified company headquartered in Roseville, Mich. Peninsular Cylinder supplies air and hydraulic cylinders to clients in the automotive, lumber, oil, food processing and other industries. All Peninsular cylinders, cylinder accessories, pneumatic radial motion clamps and pneumatic thrusters can be manufactured to either NFPA or metric dimensional standards. With top performing products and an outstanding customer service team make for an unmatched cylinder experience. Peninsular Cylinder employs 78.
Challenge
Throughout the years, Peninsular Cylinder Co. tried several different ways to increase efficiency and boost profitability. Although they achieved some results, they weren’t where they wanted to be. They were looking for smarter solutions to increase on-time deliveries, improve inventory turns, reduce scrap and rework, and reduce cost. They turned to the Michigan Manufacturing Technology Center (The Center) for assistance.
Solution
First, Peninsular Cylinder’s current business situation was charted using The Center’s proprietary Transformation Planner. Opportunities for improvement based on achieving specific percentile targets within their industry were identified. The Center recommended the following solutions to help move Peninsular Cylinder forward to achieve their goals.
• Small Business Operations Planning (SBOP) to set achievable and measurable goals and mentor management in pursuing Lean strategic business solutions.
• Lean Champion training to develop in-house talent for systematically finding and attacking waste, while developing a company culture of safety and respect.
• Value stream mapping to document, analyze and find opportunities to increase efficiency and help boost profitability for Peninsular Cylinder. This tool helped Peninsular Cylinder clearly understand how the flow of materials and information as a final product makes its way through the value stream.
• 5S workplace organization to achieve greater efficiencies and better results within the factory.
Results
- Sales growth: $800,000
- Retained sales: $200,000
- Jobs Created: 6
- Jobs Retained: 2
- $60,000 investment in new products/processes
- $1,800,000 in capital investments plans
- $65,000 in employee training investments
- Cultural transformation based on respect and trust