Business process optimization: Glacom Case History

We have spoken extensively about how important it is to achieve the right level of efficiency and productivity, and the commitment required to improve business processes. Small and medium-sized enterprises often face operational problems that can hinder their growth and profitability. It is precisely in these situations that business process optimization offers significant help to companies seeking to streamline their operations and maximize their potential.
In this article, we explore three optimization examples concerning a manufacturing company, a farm, and a firm specializing in the mechanical field. Each of these cases features companies that faced various challenges and succeeded in improving their processes by adopting the proposed solutions. 


The manufacturing company case study

Specializing in custom metal fabrication, this company operates in a niche within the production world. With a total of 15 employees, it has managed to build a reputation for supplying high-quality metal products tailored to the needs of its clientele.

• Problems emerged


The first problem encountered concerned disorganized inventory management. In fact, the company struggled to accurately track raw materials and finished products, which led to frequent shortages and excess stock.
The second problem related to production scheduling. In fact, because it was done manually, it caused several inefficiencies. The result was an underutilization of resources and a failure to meet deadlines.
A third and final problem, common in small or medium-sized enterprises, was the flow of information between different departments. Being slow and often subject to misunderstandings, it caused delays and errors in order management.

• Proposed solutions

To resolve these issues, the intervention of our business process optimization consultants was requested. The proposed solutions comprise four steps.

Through the mapping of business processes, it was possible to outline a '360-degree overview' of the current state of the company.
Based on the mapping of production processes, an inventory management software system was implemented, making it possible to track materials in real-time and allowing for better control of the goods present in the warehouse.
To solve the production problems, production planning software was introduced as support in the management of orders and their scheduling, taking into account priority and material availability.
The process regarding the communication of information was then reviewed. By gaining awareness of the communication flow, it was possible to implement best practices to allow for timely notification regarding any changes or updates.

• Analysis three months after the intervention

Three months after the intervention, significant improvements emerged.
 The company reduced material waste by 20% and eliminated excess stock. This allowed for cost savings and improved customer satisfaction.
On-time delivery rates increased by 15% and machine utilization improved by 30%, resulting in an increase in productivity.
Furthermore, the new rules for communicating information reduced errors and misunderstandings by 40%, while also fostering a more collaborative work environment.

The farm case study

The second case takes us into the world of wine production. The company consists of 8 people in production and 5 in the office.


• Problems encountered

First, a 'time and motion' analysis of manual operations was conducted. This made it possible to detect inefficiencies and find the right solutions for each. One of these issues concerned the low saturation of personnel in the production area.
During the consultancy, it was then noted that grapes were being sold due to a lack of space and production capacity. The emerging data highlighted that in the previous three years, if the company had opted for transformation into wine instead of selling grapes, it would have earned up to 90% of the possible turnover. Therefore, a further analysis was conducted to increase space and production capacity and maximize profit through an increase in production capacity.


• Proposed solutions

To address these challenges, the business process optimization consultants suggested several solutions.
First, a change in method was introduced to free up one person from the production area, assigning them to higher value-added activities and consequently increasing production efficiency by 20%.
Various scenarios were created with possible necessary investments to solve the problem of limited space and low production capacity, and the option most suitable for the company's needs was chosen together with management.

• Analysis three months after the intervention

Better productivity was achieved and cycle times were reduced, greatly improving operations and timing. The efficiency recovery obtained in production by decreasing the number of people required was balanced by the increase in production activity. By tripling the turnover, further hiring will actually need to be considered over the next 5 years.

The case study of the firm specializing in the mechanical field

• Problems encountered

Among the business problems addressed, the handling of rotors and stators for electric motors had to be managed, which were very heavy, resulting in manual movements that were burdensome from an ergonomic point of view. In this context, the goal was to improve ergonomics through a time and motion analysis, a spaghetti chart, an ergonomic analysis, and the design of a layout for operator workstations, aiming to reduce as much as possible all manual lifting of weights and movements that created inefficiency.
It was necessary to address a further problem related to the cycle time of a machine, which, being very long, led to a state of inactivity for an operator.

• Proposed solutions

To address these challenges, several solutions were suggested.
Thanks to the results of the time and motion analysis on micro-movements, it was possible to understand how to act on the cycle time and improve the operators' work from an ergonomic point of view. With this goal, pallets that transport raw materials were introduced to intervene specifically on ergonomic improvement.
The layout of the workstation, approximately 25 square meters, was completely redesigned. This made it possible to move from a cycle time of 35 minutes to 20 minutes without making investments, therefore at zero cost.
With a timing analysis related to other processes occurring within the factory, an 'operator-machine' pairing was created, thus recovering 50% of each operator's working hours to be used in other higher value-added activities.

• Analysis 3 months after the intervention

Three months after the intervention, great participation from the workers was recorded, and there was a notable improvement from an ergonomic point of view. The danger of absenteeism due to repetitive strain injury was averted. With a time and motion analysis on micro-movements, the cycle time was reduced by 10%, which further contributed to reducing the muscular effort required from the operators.

Conclusion

In the business world, the search for efficiency and profitability never ends.
These case studies provide an idea of how interventions in small and medium-sized enterprises across different sectors can provide significant help in terms of business process optimization.
Although specific challenges may vary, the basic principles of business process optimization remain universal for SMEs that want to thrive in today's competitive landscape.
In conclusion, the road to business success often involves the willingness to adapt, innovate, and continuously optimize processes.
By investing in business process optimization, significant returns can be achieved, ensuring vitality and success across various sectors.