Lean transformation for a diversification and growth strategy

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Our client is a company located in the Treviso area that started as manufacturer of metal bed frames for some major furniture companies in the area. During the first 25 years of its life the company has built a strong image based on the quality and reliability of its products. In recent years its management has decided to start a new development cycle based on a diversification strategy. The first step of this strategy has been the production of bed frameworks with the company’s brand, the creation of a distribution network and the opening of some company-owned shops. A second step has been to expand product range to include wood bed frames, mattresses and pillows. In a word: from metal frames to a range of products for a comfortable and natural sleep. This strategy has been conceived together with a revolution in the manufacturing system based on the logic of “zero Kilometres” production, an integrated system that involves suppliers that are close, highly competent, flexible and willing to grow with their customer.

[custom_headline type=”left” level=”h2″ looks_like=”h4″ accent=”true”]The Challenge[/custom_headline]The challenge that faced top management was that of enabling the organization to sustain the new complexity while at the same time to remain capable to evolve, to improve, to change and face the new responsibilities.

[custom_headline type=”left” level=”h2″ looks_like=”h4″ accent=”true”]The Action[/custom_headline]
Our project started in 2008 with a training session on the principles and methods of lean manufacturing. After this we launched a number of projects in the metal bed frames production area. Afterward we worked on the purchasing process and on the organization of warehouses. We have then reorganized office work with the purpose to create new “paperless” offices. The model applied to metal frames has been extended to wood frame and mattresses production and so these new flows has been organized according to the lean logic since their very beginning. Improvement projects have been developed almost everywhere bringing about a large use of kaizen and kanban methods. A special attention to human resources has suggested to hold several training sessions both on technical aspects and on such themes as communication, team spirit etc. Today special attention is devoted to performance measurement. Our objective is to implement an integrated system capable of measuring all kind of improvement: efficiency, quality, and environmental Impact.

[custom_headline type=”left” level=”h2″ looks_like=”h4″ accent=”true”]The Results[/custom_headline]
The project is still in progress and will always be in progress since, according to lean principles, there is no limit and no end to improvement, but a few significant results are already evident. Efficiency is clearly shown by the less than proportional ratio between the revenues growth rate and the costs (especially fixed costs) growth rate. Expertise and assimilation of lean model by the organization has been assured by the fact that the new processes have been designed according to lean principles since the very beginning.. Flexibility is shown by the fact that new technologies, new materials, new quality problems have been faced successfully basically by people already present in the company.