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Controlling labor costs within production

Marketing Solutions Company

Case Study

3
On this page:
     

    A marketing solutions company had signed on a large account which needed to be profitable due to stagnating revenue and decreasing EBITDA.
    However, they were seeing excessive amounts of overtime, inefficiency, and labor costs, leading to compressed margins.
    Carpedia was engaged to build and install improved processes, upgrade performance tracking, and help develop a high-performance leadership culture.

    %

    Decrease in Headcount

    %

    Decrease in Overtime per Page

    %

    Increase in Pages per Labor Hour

    - SVP Operations, President & CEO

    “Over the past year, you have all done a tremendous job working with our leadership team to transform how we think and operate as a company. From the beginning of the project until now, there has been a noticeable difference in growth within the entire team. I feel it, our customers feel it, our people feel it.”

    Carpedia partnered with the client to revamp the management system with a focus on controlling labor cost within the Production function.

    Key changes included:

    • Designed and implement standardized processes with less disruption, increasing capacity and resource utilization
    • Improved turnaround time by creating smoother workflows, focusing on error reduction, and maintaining high quality standards
    • Provided leaders with tools for proactive planning, alignment to business requirements, KPIs to measure attainment to plan and visibility of opportunities to improve performance
    • Improved active management through Carpedia College training and on-the-job coaching

    The Results

    At the conclusion of the engagement, the client observed a significant improvement in their operation. They now had the tools to measure their processes and respond to variances rapidly and effectively. The changes placed the client in a position to ensure the success of their new account.
    The success of the project led to additional engagements with Carpedia within other areas of the business.

    Results Included:

    • 22% decrease in headcount
    • 33% decrease in overtime per page
    • 157% increase in pages per labor hour
    • 81% decrease in errors per page

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