May 7, 2014: CMP Wins Manufacturing Leadership Award
Lean Manufacturing Initiative Brings Company Dramatic Gains
OKLAHOMA CITY — CMP Corp., a supplier of replacement compressor parts for HVAC and refrigeration equipment, has been recognized with the 2014 Manufacturing Leadership Award in Operational Leadership for its Lean Manufacturing Initiative, a comprehensive, systematic, and multi-year effort to eliminate waste and generate cost-efficiencies across the company.
“It’s an incredible honor to be recognized with a prestigious Manufacturing Leadership Award,” said CMP President Brad Croy. “The gains we have realized are a testament to the value of applying proven lean principles and adopting cloud ERP [enterprise resource planning] in manufacturing. NetSuite has been instrumental in helping us achieve the real-time visibility and process efficiency we needed to eliminate waste and grow the company.”
CMP undertook its Lean Manufacturing Initiative in 2009 as it, and other companies, struggled with the effects of the recession. Critical elements of the initiative included workforce training in lean best practices through manufacturing industry alliances in Oklahoma and implementing NetSuite cloud ERP software. Using lean principles of eliminating waste, CMP undertook a large-scale overhaul of its manufacturing plant, implemented new optimized processes for production and inventory control, and reduced its in-house server count from 10 to two while avoiding the cost of one full-time IT professional.
In its core crankshaft production line, the Lean Manufacturing Initiative has enabled CMP to reduce production lead time from 85 to 10 days, cut crankshaft production costs by 25 percent and decrease the distance traveled for crankshaft production from 1 mile to 240 feet. These and other efficiencies, including a 90 percent reduction in back-orders and 75 percent improvement in IT efficiency, have helped CMP drive double-digit revenue gains and improve its competitive position.
“The Manufacturing Leadership Awards judges were very impressed with the willingness of CMP Corp. to challenge conventional thinking and to aggressively adopt new technologies and breakthrough business processes,” said Jeff Moad, research director and executive editor at Frost & Sullivan’s Manufacturing Leadership Council. “With considerable help from NetSuite, CMP was able to direct more of their resources where it mattered most: the development of best-in-class products and superior customer service.”
For more information, visit www.cmpcorp.com.
Publication date: 5/5/2014