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News Release from: HOSCA Group | Subject: Lean manufacturing funding
Edited by the Manufacturingtalk Editorial
Team on 09 November 2004
Lean manufacturing funding helps
lighting maker
Flexible Lamps has become one of just 15 companies nationwide, to win DTI funding to develop its supply chain programme - the funding was secured with the help of lean manufacturing consultants.
Flexible Lamps has become one of just 15 companies nationwide, to win DTI funding to develop its supply chain programme - the funding was secured with the help of lean manufacturing consultants, HOSCA Based in Harlow, Essex, Flexible Lamps designs and manufactures a range of vehicle lighting for International markets
This article was originally published on Manufacturingtalk on 16 Oct 2003 at 8.00am (UK)
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With costs growing faster than sales, Flexible Lamps? return on sales (ROS) had been consistently falling over the past decade; particularly so over the last three years.
In an attempt reverse the erosion of ROS, Flexible Lamps called in specialist lean manufacturing consultants, HOSCA with an initial requirement to generate annualised savings of GBP 750,000.
"It was crucial we maintained our current business and provided positive motivating messages to staff at the same time as implementing lean manufacturing and continuous improvement philosophies - not just in manufacturing but throughout the whole business," says Lynne Baker HR Director at Flexible Lamps, "We chose HOSCA because of the quality of their references - we were able to visit some of their customer sites too.
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We liked their approach; they got fully involved whilst remaining objective." Baker found an unexpected bonus to working with HOSCA.
The total cost of the initial project was GBP 370,000 and this year with HOSCA?s help, Flexible Lamps has been able to secure GBP 135,000 of funding from the DTI Supply Chain Groups Programme.
The DTI programme, launched in 2002, aims to set up supply chain groups to increase the capability of the host? company?s whole supply chain, as well as the individual companies within it.
The programme has been established to promote ?globally competitive automotive supply chains in the UK? and any company manufacturing components for motor vehicles in the UK can take apply for a share of the £15m funding available through the programme.
(The programme has been extended to cover aerospace companies) HOSCA was instrumental in helping Flexible Lamps to secure its bid earlier this year, one of only two approved without conditions, out of a total of twenty two bids made to the DTI.
Results to date from the total programme are impressive.
In all four key areas of the business; manufacturing, support, operating overheads and materials the initial savings target for year two have been met with annualised savings after the initial two years running at 6.5% (GBP 2.4m) of sales value.
In manufacturing, where four internal champions were appointed, productivity improvements of between 30% and 50% have been realised.
The target for 2004 is to increase savings by a further GBP 700,000 with HOSCA continuing to support the business in meeting its key challenge ? making the process sustainable.
Of the GBP 15m DTI funding, up to 80% is still available.
HOSCA is available to provide advice on securing the funding and designing programmes that meet the DTI criteria.
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