Transformative Business Support: Improving Operational Efficiencies

Family run SME Ktwo is the only UK manufacturer to offer a full range of both muck spreaders and trailers. Manufacturing quality agriculture machinery from sites in Aylesbury and Southampton, the business enlisted the help of the Manufacturing Technology Centre [MTC] to improve their operation management and team culture.

THE CHALLENGE

Ktwo's primary challenges were around the day-to-day running of the business, including:

• Improving monthly cash flow

• Reducing late deliveries

• Improving team communication

Solutions needed to address operational deficiencies, including materials management, production planning, leadership culture and health and safety action support.

MTC'S SOLUTION

The MTC undertook a full strategic operational review to understand critical processes, key handover requirements, team communication and process times. This resulted in:

• Implementation of a governance structure over the management of health and safety actions

• Weekly management meetings focused on the Safety, Quality, Cost and Delivery elements of operations (SOCD). 

• Business structure and leadership team evaluation reviews on capability, development requirements and restructure support 

• Facilitation of real-time improvement workshops, driving a continuous improvement culture across the business 

• The senior team now able to lead by example, supported with a hands-on approach to leadership and coaching to engage and motivate the wider team

THE OUTCOME

• External health and safety audits were successfully completed, with a structured leadership governance process in place to continue with compliance 

• New business structure in place with key leadership positions filled to enable departmental sustainability and development 

• Material stock management processes implemented with stock locations introduced into SAP, allowing system development to create a usable business system 

• Introduction of a material control process to communicate and set realistic expectations for external customers and the operations teams 

• Live production process dashboards implemented that are reviewed daily to monitor and continue to drive the business forward 

• An aligned, business leadership team, leading a culture of improvement, support, performance and a one-team ethic 

BENEFITS TO THE CLIENT

• 15% increase in turnover [comparing Jan-Nov 21 to 2022

• 2022 was the business's highest revenue year to date, with an increase of £1.3m in turnover from 2021, to £11 million 

• 12% decrease in purchase spend comparing Jan-Nov 21 to 2022, due to stock control and measures introduced into purchasing 

• 85% increase in On Time In Full [OTIF)

• External health and safety audit was passed for the first time with no immediate actions

• New leadership team developed with clear alignment

• Business culture change with team members engaged, supported and aligned with a ·can-do' approach