Lean Office Review Results in Quick Savings for Applied Engineering

About

Applied Engineering Inc. is a 49-year-old manufacturing company that makes highly precise aluminum components for aerospace, military, medical and archery applications. Located in Yankton, South Dakota, the company employs 165 people.

Challenge

Business at Applied Engineering had been increasing steadily for the past five years. However, preparing products for delivery involved up to 25 steps, causing an accumulation of delays at various stages in production and increasing delivery costs to unacceptably high levels. To meet deadlines the company was shipping too many products at short-term, high-cost rates.

Solution

Applied Engineering reached out to the experts at South Dakota Manufacturing and Technology Solutions (MTS), a NIST MEP affiliate, who began a review of company processes. After leading an in-depth review, they helped the company improve in-house coordination, speed up work-flow, and reduce waste. Together Applied Engineering and MTS worked to increase efficiency and more clearly identify priority products.

The company successfully implemented most of the changes within two months, saving thousands of dollars in the first 90 to 100 days. "The Lean Office review was a great way to review the overall process and improve production flow," said customer service manager Richard Stark. The improved communications brought faster front-office processes as well as a sizable decrease in shipping costs.

Results

• 50% reduction in shipping cost in the first two-thirds of the year
• Saved thousands of dollars within the first 90-100 days
• Increased efficiency in front office processes