Company:

Manufacturer of commercial plumbing fixtures and washroom accessories

Objective:

Decrease the cost per part on plastic components already produced by General Plastics and introduce economical alternatives to existing stainless steel fixtures manufactured by other suppliers

Situation:

To remain competitive in an increasingly price-driven marketplace, the customer requested that General Plastics initiate cost reducing material and design changes that would not adversely impact quality or aesthetics. A rapid order turnaround time and adherence to demanding kanban shipment expectations were essential.

Solution:

General Plastics was able to identify and procure a more cost-effective alternative to the plastic currently being used. The material also performed as well as stainless steel in this application and offered the additional advantage of being available in multiple colors, thus increasing product marketability. A variety of targeted design modifications reduced the number of components needed and decreased labor costs. General Plastics also slashed production lead times from six weeks to two weeks by accurately inventorying raw material based on an analysis of historical data and anticipated future sales demands.

Bottom Line:

As its competitors witnessed an average 35.0% or more rise in commodity prices, this customer immediately realized a 13.4% decrease in material costs alone. The timely strategic switch to plastic components also enabled General Plastics to protect the customer from potential material cost increases for a minimum of one year.