Mattress Manufacturer
CASE STUDY
About the opportunity
Sealy Mattress, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes bedding products in the United States, Canada, and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products. The company had grown to become one of the largest bedding manufacturers with 17 plants across the U.S.
The Challenge
Production capacity had become a limiting factor for growth to the business. Product sales were hitting record numbers; however, lead times were continuously stretching up to two weeks per order. Clients were not satisfied, and Chinese manufacturers started to emerge as a competitive option given their low cost offering and comparable lead times.
Solution
The executive leadership at Sealy recognized the Chinese competition was threatening to absorb significant market share away from Sealy. This situation prompted aggressive action, Sealy decided to launch an initiative to increase production capacity and reduce lead times.
Our engagement started by assessing the state of the operation in which we identified numerous opportunities. There was a lack of product flow, shopfloor organization, and quality defects among other opportunities. We used a three-phase approach to address each of these opportunities. In addition, we helped standardize processes which eliminated many of the quality problems.
Finally, to sustain the improvements, we shared the Lean Daily Management principles with all leaders and implemented a strategy deployment process to ensure continuous improvement thereafter.
Our engagement started by assessing the state of the operation in which we identified numerous opportunities. There was a lack of product flow, shopfloor organization, and quality defects among other opportunities. We used a three-phase approach to address each of these opportunities. In addition, we helped standardize processes which eliminated many of the quality problems.
Finally, to sustain the improvements, we shared the Lean Daily Management principles with all leaders and implemented a strategy deployment process to ensure continuous improvement thereafter.
Results
Sealy Mattress was able to maintain and increase market share and fend off the Chinese competition. Among the results that Sealy accomplished as part of our engagement are:
• Lead time reduction of 79% (From 14 days to 3 days)
• Labor productivity improvement of 20%
• Avg. labor cost reduction of $900K per plant (annualized)
About Us
We help manufacturers achieve and sustain operational costs reductions of 20%+, improve on-time delivery to 99%+, and reduce defects to improve product quality to 99%+. These changes help our clients grow company profit margins by up to 25%.
We have developed and used a proven approach to ensure manufacturers achieve and sustain significant performance improvement. Our consultants have over 15 years of experience working with manufacturers and developing their capabilities.
We have developed and used a proven approach to ensure manufacturers achieve and sustain significant performance improvement. Our consultants have over 15 years of experience working with manufacturers and developing their capabilities.