Focus Management Group

Manufacturing Industry Experience

Flag & Banner Manufacturer

Company:

Manufacturer and Distributor of Flags & Banners

Situation:

A manufacturer of flags and banners was struggling to improve profits. The Company made approximately 6000 standard products and customer-designed banners for inside and outside environments. Products ranged in size from 2’ x 3’ to 200’ x 100’ US flags using a silkscreen and/or hand sewed process. Artwork was completed using prepress department. The Company did not have bills of materials or product costing and due to the nature of the flag business, was extremely seasonal in sales.

Focus Scope:

The Company engaged a Focus Professional to run the operations and establish the necessary controls to improve profitability. .

Tasks Performed:

The Focus Professional was responsible for scheduling all departments including prepress, custom manufacturing, silk screen, and flag production.

  • A standard base of operation activities was developed to build routings and bill of materials.
  • Production forecasting was developed and a simplified MRP program was written to project material requirements.
  • Because of the seasonal nature of the business, finished goods had to be maintained in inventory in order to ship the same day as receipt of order. Finished goods inventory levels were established and production was scheduled based on min/max levels.

Results:

Following completion of the manufacturing improvements, the Company improved on-time performance to over 95%, reduced inventories by 50%, leveled production, reduced costs and returned to profitability.

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