Progressive Automations is a premier provider of linear actuators; they strive to offer the most comprehensive selection to various industries while providing an incredible customer service experience. The objective of this engagement was to prepare Progressive Automations for their expected growth across industries and applications as they continue to provide innovative solutions for their customers.
The Challenge
To facilitate their growth, key processes within their warehouse and sales operations were identified, and supporting technology was assessed. Additionally, the warehouse layout and inventory management practices were reviewed to ensure that Progressive Automations is well equipped to seize the growth opportunities ahead.
Project
Warehouse Process Review to Support Expected Growth
Client
Progressive Automations
What We Did
Process Review
Financial Driver Analysis
Management Toolkit Analysis
The Objective
Propel conducted a one-week review of Progressive Automation’s key operations
Process Review
Processes were mapped in their current state and critiqued by managers and staff to highlight any opportunities in the processes that could enhance the outcomes of product fulfillment. The Propel team interviewed key positions involved in the process and conducted process observations of the activities in the Purchasing, Warehousing, and Sales departments.
Financial Driver Analysis
A Profit Driver Model was developed to demonstrate the linkages between the cost and revenue drivers of the organization. Using this model, the Cost of Goods Sold per order and Labour Cost per Order were analyzed. In addition, the Average Revenue per Order and margin for each of their product lines were evaluated. From here, the impact of changing the organizational targets can be modelled to help determine specific improvement objectives in terms of financial and capacity improvement.
Management Toolkit Analysis
Propel conducted a review of the tools Managers in the department use to manage processes in their area including Business Strategy, Forecasting, Planning, Execution Control, and Reports. From this analysis, Propel was able to identify gaps in tools that should be developed in order to increase visibility throughout the areas.
The Results
Staff engagement throughout the analysis was high, with over 30 opportunities for improvement identified. The Business Process Analysis provided Progressive Automations with baseline measures of their current state and identified the opportunity to introduce a Management Toolkit to improve the management of key processes, leverage systems to improve reporting, and increase visibility through daily and weekly reporting of results and Key Performance Indicators. Propel determined that through a comprehensive Business Process Review, Progressive Automations could improve the capacity of the departments through introducing process changes, with an anticipated reduction of 30% of the non-value-added time in the processes.
