Muth Electric: Lean Transformation
Lead-time reduced to 1 to 2 working days for 50 plus standard assemblies
25-40 % improvement in productivity
Nearly $200,000 in cost savings going directly to the bottom line through improved delivery to project
“The MTS team did a great job working with our staff to reorganize and lean the processes in our prefabrication department. The outcome greatly improved our turnaround time for orders and enabled the department to complete even more products, at a more profitable rate for our company.”
- Paul Muth, president and CEO of Muth Electric
Mitchell, South Dakota is home to the Corn Palace and is also home to Muth Electric, an electrical contracting business servicing different types of industries including schools, office buildings, healthcare, and manufacturing facilities. Their company is known for working on large industrial projects like water and wastewater treatment facilities, wind and solar energy plants, airport runway lighting, correctional facilities, and more.
Started in 1970, Muth Electric Inc. has grown from two people to over 435 employees across South Dakota, North Dakota, and Nebraska. The family-owned business has expanded into prefabrication, data and fiber cabling, automation and controls, thermal imaging and design and build work. They can assist companies from conception to completion and will make it their mission to stay in budget and on time.
To Muth the customer is the most important asset. They believe in serving their customers through exceptional service and quality. To do this, they embrace lean concepts to provide the finished service as quickly and as safely as possible. Their speed adds value to the customer and helps them complete their project in a timely manner as well.
Because their customers are their primary focus and their employees are determined to have satisfied customers, Muth wanted to continue to refine their lean processes. The leadership team at Muth decided to reach out to the lean experts at MTS to help guide them along on their lean journey. MTS served as a mentor to help the company find new ways to implement lean concepts. Muth Electric found it helpful to have extra hands for training employees on lean principles and leading projects to implement their lean transformation in the Pre-fabrication division of their business.
Every day, the company works hard to apply practical lean methodologies in their Pre-Fabrication division, which is their manufacturing operation. Lean transformation included implementing supermarkets for quick turn-around of standard assemblies, standard work, dedicated work cells, quick changeover, workplace organization, paperless work procedures, paperless manifest system and quick response delivery system.
At Muth, little changes are celebrated. No matter the size, the company encourages employees to identify problems and share lean improvements with others. The company knows little changes over time can deliver sustainable business results and keep their customers coming back.
Throughout their lean journey, they were able to report:
- Lead-time reduced to 1 to 2 working days for 50 plus standard assemblies
- 25-40 % improvement in productivity
- Nearly $200,000 in cost savings going directly to the bottom line through improved delivery to project