Sytech Precision Manufacturing Embraces Lean Training to Nearly Triple Sales Growth

Company Profile

Headquartered in Spokane, Washington, Sytech Precision Manufacturing is a sheet metal fabricator specializing in custom metal fabrication and finish from design to delivery including electrical enclosures and similar assemblies requiring cutting, bending, welding, powder coating, and the assembly of multiple sheet metal components.

Situation

Sytech was successful securing work, but lacked the necessary speed of production and delivery due to what they attributed to an ongoing capacity challenge within their plant. Unable to take on new sales opportunities (several million dollars-worth passed over the prior year), they struggled to stay on-time with current customers. They believed they were physically out of space, which adversely affected their overall manufacturing process. This led to massive overtime, low morale, reduced bottom line margins, and management was seriously contemplating purchasing additional property for expansion purposes.

Having been introduced to the concept of Lean, Sytech management sought out an expert to see how Lean might benefit their company. Through an internet search, they were introduced to Impact Washington in 2017.

Solution

Impact Washington initially conducted Lean Champion training which included a Lean 101 seminar for all Supervisors, the President, and Vice President. During the training, 5S and Toyota Kata were emphasized. Sytech’s reaction? It changed their lives. The Lean training revealed that there was a better way to process product (more single part flow) that could help solve the company’s problems. Impact Washington later provided basic Lean training to all shop staff with several classes since for new employees.

Following the initial training, the Lean instructor continued to consult once a week for several months to help make the continuous improvement process part of the culture and the company’s daily management system. Sytech’s ongoing use of continuous improvement has since streamlined their process, removed obstacles, and freed up more capacity as well as space in which to work. They are still consistently trying to do better every day.

Results

• Increase in employee retention rate to 94%
• Growth in sales (from 24 to 64 customers served per year)
• Decrease in employee overhead (reduced from 115 to 78) by eliminating an inefficient third shift
• Surge in on-time delivery rates from 42% to 95%
• More than doubled available capacity of plant (previously was only 30%, but Lean has opened up their floorspace to 70%)
• Implementation of profit-sharing program (paid out over $450K of benefits to employees in 2018)
• Uptick in overall working efficiencies to over 100% in some cases, and are even completing some jobs faster than customer expect
• Hired a full-time Continuous Improvement Manager to help the company concentrate on continuing to decrease overall lead-time of orders
• Development of pride in their company. In the past, the company didn’t put emphasis on showing off their space, but now they are happy to bring through school tours and other clients who are also interested in reducing waste. It’s completely changed their culture.
• Improvement in morale — people are happier and working harder without even knowing it
• Decrease in quality errors, scrap, and waste