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Overview

Masco Cabinetry was an international manufacturer of custom kitchen and bath cabinetry. By sales volume its was the largest custom and semi-custom cabinet maker in North America. The company was based initially in Middlefield, Ohio before merging with other Masco entities where it resided in Ann Arbor, Michigan.

The Problem

At the time, Masco Cabinetry was one of the highest cost products on the market. Several years of finishing at the top of the JD Power rankings was the driving force in the manufacturing strategy. After the Great Recession in 2009, the leadership wanted to look for a nimbler way to manufacture while keeping its world class materials, customer service and quality intact.

The Solution

A multi-national cabinet manufacturer produces semi-custom wooden cabinets distributed through the retail and dealer channels. Their manufacturing footprint includes two assembly facilities and four component facilities. Superior design flexibility and brand recognition allowed the client to extract a healthy premium, but a steep decline in the housing market threatened both volume and margins. Leadership proactively engaged our team in pursuit of a step change reduction in manufacturing cost that would allow for a more flexible and competitive pricing structure.

Through a joint analysis with the client’s executive leadership team, we determined that a 20% reduction in manufacturing cost would provide unparalleled market flexibility, further enhancing their competitive position in spite of bleak economic conditions. Using real-time data and analytics from our previously installed business intelligence solution, we quantified opportunities within direct and indirect labor, scrap and repair, manufacturing footprint and organizational structure.

Our professionals led onsite client teams in a structured approach to addressing the various opportunities. Six Sigma tools and techniques identified and controlled critical process inputs, reducing variation-driven waste. A selection of lean manufacturing tools enhanced process design and material flow. Dynamic scheduling models optimized overall manufacturing performance. Operating system enhancements increased flexibility and resource utilization. A manufacturing strategy analysis identified unnecessary redundancies and unutilized capacity, leading to a reduced manufacturing footprint. Finally, benchmark analysis along with span of control studies shaped a more lean organizational structure.
 

The Results

The year-long engagement successfully enhanced our client’s competitive position and produced the following results:

  • 21% reduction in direct labor cost per cabinet

  • 25% reduction in indirect labor cost per cabinet

  • 15% reduction in variable overhead cost per cabinet

  • 31% reduction in scrap and repair cost per cabinet

  • 22% increase in productivity

The client saved over $40MM annualized a six month payback and a return on investment of over 400%.

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Typography is the art and technique

Typography is the art and technique of arranging type to make written language legible, readable and appealing when displayed.

Typography is the art and technique

Typography is the art and technique of arranging type to make written language legible, readable and appealing when displayed.

Typography is the art and technique

Typography is the art and technique of arranging type to make written language legible, readable and appealing when displayed.

Typography is the art and technique

Typography is the art and technique of arranging type to make written language legible, readable and appealing when displayed.