There is a fine line between profit and loss for a manufacturer. That line is based on volume and the efficiency of many variables in the right combination. There is no other industry that understands Cost Of Poor Quality (COPQ) as much as manufacturing. Every mistake or defective product impacts the bottom line. BITA’s experience indicates at least 20% of company’s revenue is on wasted tools, legacy systems, inefficient processes, affecting productivity and profits.
The second generation owner’s sons of a Canadian manufacturer were frustrated with how they could keep up with global competitors. So many of their Canadian counterparts had closed due to the strength of Chinese and Indian economies. The sons knew their hand crafted products were superior and the quality of offshore mass production was much lower. The sons had a strategy to modernize the plant including retooling the assembly lines, installing new CNC machines and hiring CAD designers to efficiently use raw materials. This provoked resistance from some of the employees who had been there for decades.