Company Overview
Located in McBee, South Carolina, A.O. Smith has delivered innovative hot water solutions for over 80 years. Their selection of residential and commercial water heaters, boilers, and storage tanks is unmatched for quality and diversity. Anywhere hot water is needed, A. O. Smith can provide an energy-efficient solution with maximum value during and for years after installation. The company stands behind its products and its customers with world-class service.
Situation
A. O. Smith is an active member of SCMEP’s OpExChange program. OpExChange is a unique peer-to-peer network of companies dedicated to achieving greater levels of operational excellence. Through shared learning and collaboration, member companies exchange ideas, expertise, and advice in areas such as lean manufacturing, Industry 4.0, and leadership to accelerate their pace of change, increase their competitiveness, and maintain the gains.
Solution
The company’s involvement in this group has resulted in the adoption of operational improvements that led to a lean and highly competitive facility with tightly controlled costs. Floor space has been freed up due to lean implantation activities initiated by benchmarking visits. These factors have directed the facility to acquire new production lines which brought about investment in new plant equipment and workforce practices.
Results
Cost savings – $25,000
New investment (plant equipment) – $23,000,000
New investment (workforce practices) – $500,000
Increased jobs – 30
“Our partnership with the South Carolina Manufacturing Extension Partnership and SCMEP’s OpExChange network is extremely positive and beneficial for A. O. Smith. We look forward to many more years of involvement.”
Dan Royston, Director of Operations