Hoshin Kanri case study - capital growth - Team Business
Our unique 'reality check' uncovers what you are missing out on, how much the problems are costing you and helps you identify the necessary countermeasures.
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Hoshin Kanri case study – capital growth

What if you could grow profits fourfold and your capital value by five times?

 

A well-established shop-fitting firm with a £6.7 million turnover was struggling to make decent profits. This was despite having an excellent client base and a long track record of superb quality. In view of the problems, the owner asked TBD to introduce a Hoshin Kanri team based planning programme. Within a few days, the management team planned and instigated twenty-six improvement projects across all functions and areas in the business. This meant rolling out improvements in sales, sales order processing, estimating, factory production, purchasing, project management, transportation costs, IT and site installation.

 

After adopting Hoshin Kanri, profits jumped from £120,000 pa to £962,000 pa in the first eighteen months. Subsequently average profit has risen from £141,000 pa to £602,844 pa for the three years post Hoshin Kanri. As a result of this sustained profit increase the capital value of the business jumped 500%.

 

Hoshin Kanri helps improve productivity

A large part of this success was due to a healthy improvement in hourly productivity per employee of 51%. To put it another way, the firm experienced a 34% increase in sales handled by only a 16% increase in staff.

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Get in touch

 

If you’d like to know more about how TBD can give you a better grasp of the hidden problems in your business call Jeremy Old on 0845 0945 819.

 

Or email Jeremy@teambusinessdevelopment.co.uk Remember we guarantee that our Hoshin Kanri programmes are self-funding. Consequently, you will reap benefits well above the cost of your investment.

 

You are in safe hands

 

Jeremy is author of ‘Reinventing Management Thinking; using science to liberate the human spirit’. This groundbreaking management manual draws on the latest neuroscience and psychology to help managers stimulate fierce engagement and motivation. By learning how to work with the twelve ’emotional needs’ Jeremy shows how any leader with a degree of emotional intelligence can quickly transform productivity by 30% or more.

 

Jeremy has twenty-five years experience as an independent management coach to small and mid-sized enterprises and non-profit organisations. His experience includes facilitating 54, strategic change or business improvement assignments across a wide range of industry sectors. On average these techniques yield an estimated 33 : 1 ROI for clients. In addition, Jeremy is qualified to MBA level, with a post-graduate diploma in psychotherapy.

Case study shows how Hoshin Kanri improved capital value five fold in two years

“Senior managers now make more of a communal effort. We talk a lot more, whereas before we worked in isolation; each doing their own thing, but not really realizing our impact on other departments. Factory workflow is much improved and profitability s up.” Marc Allen director Tekne shop fitting Ltd

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What if you could make these sort of savings?

 

A window manufacturer exposed the causes of scrap, rework and delays occurring in both the factory and on building sites. The Reality check also helped to identify effective remedies. Estimated savings: £85,000 (14% of turnover) in reduced scrap, rework and delays.

 

A night shift worker uncovered the real reason for a high level of scrap, rework and scheduling disruptions at a small print firm. Estimated net savings: £45,000 (33% of the firm’s current losses).

 

A printing firm’s procurement department discovered the underlying reasons for inefficiencies in the buying process. Estimated immediate savings: Cancellation of £25,000 proposed extra salary + £200,000 extra savings from improved buying methods (3% of Cost of Sales).

 

Car parts manufacturer unearthed the hidden reasons why they were receiving so many rejects from their wholesalers and a consequent attrition in customers. Estimated immediate savings: £53,000 (equivalent to about 30% of current net profit) plus an unquantified improvement in customer retention.

 

More Hoshin Kanri business improvements …