Thermo Air Ireland Ltd Design, manufacture and distribution of Air Handling and Heat Recovery Systems.

Thermo Air’s parent company Honing Beheer is a private family-owned Holding Company in the Netherlands with 10 companies in the UK, the Netherlands, France and Ireland. Three companies were established in Carlow in 1980 by Honing Beheer: Thermo Air Ireland Ltd. (air handling unit manufacture), Thermo Air Environmental Technologies Ltd. (extraction systems) and Imofa Ltd. (fan manufacturer).

Company Name
Thermo Air Ireland Ltd

Address
Athy Road, Strawhall, Carlow, R83 YE30

Service Provider
James G Hoey & Associates Ltd.

Source
IDA Ireland

Quote – “The implementation and integration of LeanStart has been a very positive beginning to a change in the mind-set of our traditional manufacturing company. The future success of the business is now on the right trajectory”. 

LeanStart Project Objectives

The reduction of the full cost of materials and component inputs including freight and lead-time implications for Thermo Air’s operations compared to the 2016 baseline of €400,000 spend.

Key Challenges

Challenging old ways of working and evolving from a silo mentality were key drivers of success and are delivered through team-based activity.

Key Changes

The company decided as a result of this project to take greater control of its supply chain in-house thus reducing waste and costs. The establishment of cross-functional teams has helped accelerate performance. The installation of a new CEO who drove this process was the key to success. In addition, the use of data based decision making in the team delivered the desired results.

Results
  1. A €32.2k saving was identified on an annual spend of €400k or 8.1% reduction. This improvement was driven by a whole basket of measures. Foremost in this campaign was the decision to purchase full panels of insulating stock and full lengths of frame cut stock from the current supplier and cut to measure at the Irish plant.
  2. A reduction of 50% in lead-times for 80% of output was achieved thus reducing lead-time from the current base of 6 weeks to a new standard of 3 weeks. This enhanced lead-time will improve customer response and hopefully improve order intake.