NDB, a middle market book and trade journal printer, has been operating in the Midwest for 40 years with a staff of over 250 people. Over the past 20 years, there has been a tectonic shift in the printing industry. Traditional printing – laden with manual pre-press activities – was going digital in both pre-press and production phases. New equipment and newly-skilled employees were mandatory to survive. A quick look at NDB’s metrics revealed an inability to adapt which was most evident in their key metrics: on-time delivery, DSO, overtime cost and customer satisfaction.
Implementing a throughput-based operating strategy combined with TOC’s proprietary methodologies, we targeted production, sales and customer service practices. The results were significant and quick. Within 6 months, DSO was reduced by 5 days, generating $500k in additional cash flow. Within 12 months, lead times were reduced by 20% and on-time delivery improved from 70% to 95%. Unplanned overtime cost was reduced by $20,000 per month and customer satisfaction indicators increased by over 10%.