Major Firearms Manufacturer

Background

Established in 1852, this corporation is the oldest manufacturer of handguns in the Unites States.

A highly recognized and respected brand worldwide this company manufactures both revolvers and pistols. They are headquartered in Massachusetts. Although their annual sales revenue has dropped in recent years, this is pervasive throughout the industry. They still employ well over 500 people and make the finest quality handguns in the world.

Quality and dependability are critical in this market. Our client is number #1 in revolvers and has no plans to relinquish that position. Their new product introductions at the most recent “Shot Show” held in Orlando, FL cannot be matched. Although their market share in pistols is not quite as prominent as revolvers, their continuous improvement efforts with pistols will surely move them up the ladder. Positive profit margins have returned this past year and their investment and dedication to the future is clear.

The Problem

This company has seen many evolutions of the business cycle and with it many management trends, philosophies and techniques have come and gone. In most areas the current manufacturing process and material flow are disjointed and cumbersome causing long lead times and lower than desired productivity. Inventories are at a minimum double what they should be. Management performance reporting and disciplined methods for managing went away a few years ago with the indoctrination of self-directed work teams. It was clear that under this method of managing productivity was not reaching its potential.

In the past few years the underlying drive and investment in continuous improvement had diminished and allowed some of the above-mentioned opportunities to fester. New management in clear support for allowing internal creativity to accelerate change wanted to develop a process for facilitating change. This was the missing component.

Scope and Assignment

Synergetics was first asked to assist by looking at operations, and some of the support areas, in order to help discover ways of reducing material, labor and inventory costs. Secondly, build a process for identifying more specific operational needs and provide training to a dedicated continuous improvement team. During the project Synergetics addressed the following areas:

• Establish a list of prioritized LEAN events to address quality, improve cycle times and gain cost reduction
• LEAN Manufacturing (Layouts, Processes & Systems)
• Design and implement Manufacturing Metrics and Management Training
• Forecasting (Move to a Build to Demand)
• Supply Chain — Optimization of Supplier/Vendor Pricing

The Results

• Productivity has improved an average of 15% in Barrel and Frame areas
• Lead time and cycle time decreased and increased tracking at an average of 10%
• Developed and implemented new management reporting metrics
• Comprehensive continuous improvement training focused on the application of LEAN principles
• Organized Vendor Competitive Bidding Opportunities and identified commodity pricing opportunities in excess of 25%
• Total annualized ROI for this partnership is expected to be 2.3 to 1
• The relationship and support for this company continues. We are looking at a potential phase III initiative for adding value

Synergetics Installations Worldwide, Inc.

75 Congress Street, Suite 201 • Franklin Block Building • Portsmouth, New Hampshire 03801 • (603) 433-8940