Case Study 2-04407
By creating a better way to develop and maintain standards, IET dramatically improved this company’s ability to prepare accurate cost estimates for customdesigned products and gave managers the data they needed to enhance direct labor productivity in daily operations by 30%.
A diversified manufacturer of products that include retail store fixtures, displays and shelving as well as office furniture components.
IET engineers dissected every operation in the manufacturing process. They established relationships between product features (e.g., physical dimensions; number of boards, cleats, drawers, assembly components, etc) and standard processing time using stop watch time study and statistical analysis tools.
These standard data relationships were codified in a menu-driven database model that employed the same product data found on a cutbill generated by product design. Now, plant estimators can easily create accurate labor cost estimates for anything the company produces and production managers can plan and measure labor productivity with confidence.
Using the improved standards, IET demonstrated that the company’s old standards had led to over-staffing in all production departments. IET provided a crewing plan that reduced direct labor by 30%. The database model, which delivered results with +/- 10% accuracy, allows product estimates to be completed within minutes.