IJM Timber Engineering Limited is an established leader in the off-site construction industry in Ireland and the UK, in the design and manufacture of quality timber frame buildings. The service is from concept design through to engineering, manufacture and erection. These buildings are at the leading edge in terms of environmental, energy management and building regulations compliance. The “green home” passive house standards are a normal part of their production capabilities.
Quote – “This is a very healthy process which has yielded significant results, and we completed during an incredible period of growth. Lean has still a lot of other projects to work on but our culture is ready for more ongoing improvements. Working with team BDS on this was a very positive experience”
Lean Plus Objectives
This company planned to expand to a turnover in excess of 1000% of it level in 2014, and increase employees accordingly. It operates in a low margin business and it wanted to increase throughput/sales without increasing overheads.
This project was also about establishing the systems requirements for the company that ensures that it can do this, and implement key elements of the system also. (ERP)
Implement Key Processes for:
The challenges were to implement new processes (as highlighted above) while still running a business that was growing rapidly, within the constraints of a recovering construction market with lean margins.
New KPI model implemented
New quality management process implemented
New organisation structure emerging
New business process implemented/designed for the whole business
New sales process and plan finalised
New on site erection processes and controls are in place.
This was a very large project with significant changes emerging from it, while we were growing by double digits each year. The results are best summarised in a few key metrics;
Growth of 206% was achieved in a period from 2015 to 2017 underpinned by ongoing improvements
Gross profit improved by 186% over the same period, with even better increases in the net profit.
Turnover per employee improved by 28% (overall organisation productivity)
On time in full improved to 98% plus.
Overheads as a % of sales reduced by 29%
Cost of quality is now well under control.