AMBAC utilizes SCMEP for Strategic Planning and Policy Deployment

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Company Overview

AMBAC International, located in Elgin, South Carolina, is a global supplier of fuel systems and related components to the heavy-duty diesel industry. Since 1910, AMBAC has been manufacturing engine systems, making them one of the oldest and most experienced companies in the industry. They primarily supply diesel fuel systems, electric governors, and advanced components. AMBAC’s products are used in global transportation, agriculture, aviation, defense, power generation, and more. Many major OEM technology products worldwide trace their heritage to the design concepts and engineering rigor of AMBAC. The company currently employees 52 individuals.

Situation

AMBAC was looking for resources that could help manage the evolution of the company. They were primarily a military company that was looking for more of a balanced portfolio between military and commercial product. AMBAC needed some strategic and operational guidance to manage the transition between those two very difference market places. They then turned to SCMEP for solutions.

Solution

After analyzing AMBAC’s needs, SCMEP presented the Business Excellence Transformation program. This program includes Strategic Planning and Policy Deployment, Value Stream Mapping, Visual Management, Metrics, and Dashboards, Standard Work, 5S Workplace Organization, Lean Overview/Lean for Job Shops, and Kanban.

The first phase included Strategic Planning and Policy Deployment Training which trained employees on how to use specific tools to create culture, change, and sustain improvements.

Up next is Value Stream Mapping, Visual Management, Metrics, and Dashboards which consists of training employees in the development and application of tools/methods. Third is Standard Work – Cellular/Flow Manufacturing. 5S Workplace Organization is fourth and fifth is a Lean Overview and Lean for Job Shops. This consists of training employees in lean principles specific to a job shop environment. Lastly, Kanban training educates employees in materials management system of Kanban.

Results

This program, although still on going, has been instrumental in their growth. AMBAC has already seen dramatic benefits. Last year, approximately 10% of revenue was new growth in their strategic focus area with new customers working on new products. This year, AMBAC has landed several new opportunities with customers they could not have approached previously. Operationally, production effectiveness is up roughly 13%, line shutdowns are almost obsolete, overall costs are declining, and former “hourly crisis management” is becoming a distant memory.

“SCMEP has been instrumental in mentoring us through the process and contributing to growth. Through our relationship with SCMEP, we were able to identify additional vendors that are local and better suited for our needs.”

“SCMEP gets on the shop floor and ‘gets their hands dirty’ quite literally while helping the people around us understand the technology and tools that they are bringing into the business. At one point, someone from SCMEP was out in the warehouse with employees counting parts. It starts at that level. They are literally doing it with us.” Robert Isherwood, CEO, AMBAC

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