CASE STUDY, CABINET SHOP NSW-2016

Business Overview: Years in business – 19 Number of employees – 9 Annual revenue – $1.8 Mill Average net profit - %5 or less

Business analysis: After conducting a comprehensive business analysis, it was discovered that the business was losing

over $300,000 every year due to factory inefficiencies alone. It was also discovered that, even though the factory always felt it was “under the pump”, it was

only running at 60% capacity. This means they have the capacity to do 40% more work, or 15 more kitchens per year that totalled another $270,000 in additional revenue.

What’s the Plan? To create, plan and implement a 12-month overall business improvement project that includes

implementing “Lean Manufacturing” principles in conjunction with a Business Coaching program that gives ownership the business skills they need to grow the business to the next level, in part, by using the new ‘lean” skills.

What’s the cost? The full 12-month program will cost $42,000 and will see a return of $300,000+ in profits retained

in the business.

Are there any guarantees? Yes. This return is guaranteed. It does however require full engagement for everyone in the

business to fulfil their roll in this plan or the outcome will be diminished.

Results so far? Nett profit now at 18% and trending up Revenue on target for $2.6 mill 10 employees, with owners working 4 days per week only Customer satisfaction survey has gone from “Poor” to “Exceptional” resulting a more work from

referrals and WOM www.strivetothrive.com.au