By: Donald K. Archer
In the course of our many cost segregation studies, we have had the opportunity to visit many of our client’s facilities and observe first-hand their space utilization and methods of operation. All too often, the layouts and operations contributed to the overall inefficiency of the facility thus increasing the cost of the operation or worse – losing customers. Accordingly, we have launched a new service that is aimed at identifying inefficiencies, developing solutions for dysfunctional operations and improving operations and decreasing operating costs.
Among the areas we investigate is the manner in which the client forecasts inventory and labor needs, quality sampling, facility layout and space utilization, inventory storage requirements, production management methods and even construction management. Our studies will include an identification of “problem areas”, possible solutions, timelines for implementing remedial actions and an evaluation of the cost-benefit to be realized. Lindon Engineering will also provide training to a client’s workforce to implement and manage operating solutions.
An example of how a business solution study benefited a client who was considering a plant expansion due to cramped conditions in their existing facility. A review of the space utilized resulted in a reconfiguration of the manufacturing machinery and the production flow of work-in-process and finished products that provided more usable space and avoided the need for an expansion. This solution saved the client about $1.7 Million in construction costs.
Another example of the benefit of a business solution study entailed a review of the inventory system of an automobile repair facility. Due to the large number of parts and maintenance materials required for the various auto types and styles, the repair shop maintained an extensive inventory of repetitive materials. In turn, a large amount of space had been dedicated to these items that required continuous monitoring, unnecessary carrying costs and even accounting for obsolete parts. An inventory control study reduced the space needed by twenty percent with a reduction in carrying costs and improved control of the parts and materials requirements.
Our goal is to assist our clients reduce their operating costs through better use of their resources and operating procedures. We would welcome the opportunity to meet with you to discuss how we can help improve your operations, space allocation and resources. For more information or to schedule a meeting, please contact us.