Efficiency improvement

Efficiency improvement

Initial situation:
Profitability of production sites of an air humidification manufacturer deteriorated year by year. In addition, the company was faced with declining order volumes. Production utilization sank which lead to further earnings reductions.

Actions
Results
Concentrate Swiss production sites at one location and expand market organizations abroad
2,5 times turnover increase over approx. 5 years, and substantial improvement of profitability from negative results to 2-digit EBIT margin
Improve production efficiency (inventory at production work place, increase employee qualification, etc.)
Reduction of production time and cost respectively
Implement supply chain management (canban, etc.)
Double inventory turnover;
Improve material availabilty
Reduction of innovation cycle
Increased introduction of product innovations;
Establish innovation leader image
Actions
Concentrate Swiss production sites at one location and expand market organizations abroad
Results
2,5 times turnover increase over approx. 5 years, and substantial improvement of profitability from negative results to 2-digit EBIT margin
Actions
Improve production efficiency (inventory at production work place, increase employee qualification, etc.)
Results
Reduction of production time and cost respectively
Actions
Implement supply chain management (canban, etc.)
Results
Double inventory turnover;
Improve material availabilty
Actions
Reduction of innovation cycle
Results
Increased introduction of product innovations;
Establish innovation leader image