Strategic Business Planning and Lean Reveal Profit
Bachhuber Manufacturing Corp., a Mayville company employing 25, is a contract manufacturer and maker of press automation equipment.
They wanted to grow their press business while maintaining the contract side and also do Lean, but didn’t know where to start.
So Bachhuber turned to WMEP and Strategic Business Planning, which identifies strategic competencies, includes tactics and action plans, outlines performance measures and aligns the company for change. It differs from a traditional plan in that it’s long-term (3-5 years) and covers all areas of business.
Bachhuber uncovered a previously unknown competency, tube bending, which is where they applied Lean. Results were “miraculous,” said Dennis Thomas, Bachhuber general manager. Lead times from 6-8 weeks to 2 days. WIP inventory dollars are down 80-85%. The plan helped focus resources to achieve outstanding results.
Bachhuber also found that their customers are actually press die designers and builders (not press users), because the die design dictates whether their products can be used with a specific press. Shifting focus helped boost their press business. Bachhuber’s sales are up 11% per year and profits up 10%.