Making More Demand into More Opportunity

The Situation

McElroy Manufacturing has been in business since 1954. Joe Perrault is their CFO, and he’s responsible for ensuring their operation of manufacturing thermal plastic pipe fusion welding equipment, and other tube finning equipment, is profitable. They are a vertically integrated, make-to-order, and make-to-stock manufacturer. When they were blessed with sudden increase in demand, they needed to respond. Fast.

The Challenge

McElroy Manufacturing wrestles with complex routings, complex bills of materials, and a great deal of variability in internal processes and external demand. With a recent spike in demand, this recipe began to feel more like a recipe for chaos than a recipe for success. On-time delivery fell. Lead times and overtime rose. McElroy needed a solution.

The Solution

McElroy Manufacturing’s infinite capacity planning system was not doing the job. After hearing about our proven expertise in Theory of Constraints consulting, they got in touch with the On-Time Edge Team. We helped them both implement the planning system itself, and all of the accompanying process. For McElroy, it’s become a near organizational-wide philosophy that extends from the shop floor all the way through customer expectations.

The Results

In a short time, we helped McElroy Manufacturing achieve…
0%
Reduction in Manufacturing Orders Cycle Times
0%
Increase in Monthly Volume
0%
Increase in Monthly Output
<1
Week average delayed delivery time

The Lasting Impact

Our time with McElroy Manufacturing proved to be more than a bandaid. According to Perrault, “The changes that we’d put in place have become a part of our culture right down to the shop floor.” It’s more than tools and processes. It’s a different way of approaching challenges. “This has been key for us and I think it could be key for anyone in that kind of business.”

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