Company Overview
A global organization, BOMAG Americas, Inc. manufactures and markets a range of light and heavy compaction, asphalt paving, milling, soil stabilization, and asphalt reclamation equipment. In 2013, BOMAG Americas acquired Cedarapids paver and CMI recycler from Terex Road Building. BOMAG moved to its new Ridgeway, South Carolina, location in 2015. The new facility tied into the company’s 2013 acquisition, which expanded the firm’s equipment offering to road building contractors. BOMAG offers customers a range of asphalt rehabilitation and paving equipment, ranging from half-lane milling machines, reclaimer/stabilizers, and material transfer equipment to a range of asphalt pavers, highway-class tandem vibratory, and pneumatic rollers. BOMAG’s South Carolina location employs approximately 120 employees.
Situation
BOMAG moved to its current location in February of 2015. Two plants were consolidated into the new location, where they not only focus on the production of large highway class pavers, but also support a large Aftermarket Parts program. Their parts come in a wide array of sizes, shapes, and weights. The company’s small parcel packing area was a significant issue. They were not only trying to manage the relocation of their business with new employees, but they were also setting up a new supply chain to support the business. Along with this came all new processes for new employees in a new facility, at the start of their peak selling season. BOMAG was looking for ways to reduce the amount of damage and customer rejections received because of improper packaging being used as well as improper packing methods being applied.
Solution
BOMAG turned to SCMEP for assistance in developing a more robust “small package” packing area. SCMEP began to work with the team on time studies, workstation layouts, packing processes, materials selection, and the entire area layout to improve productivity. The focus was set on proper packing techniques to allow BOMAG to reduce the amount of damaged freight received. Research around shipping cartons used and weight capacities was prepared as well as developing a method that employees can use in selecting packaging type.
Results
The project was very successful, culminating in a complete layout change, packing procedures, materials selection, etc. It not only had a tremendous effect on how efficient work was done within the small parcel packing cell, but it also pointed out to the management team that as a company, the principles applied to this program should be adopted across the organization. They also saw an improvement in packaging costs, a substantial reduction in damaged freight, and a much leaner and efficient operation. BOMAG saw an increase in throughput and efficiency while reducing the number of orders that were not fulfilled at the time of order placement. The dramatic reduction in damaged shipments saved them thousands of dollars in freight and scrap parts.
BOMAG was also able to fine-tune the packing area and transition to a much less expensive packing material. Roughly twenty-five different box sizes were reduced to approximately six. This was not only a cost savings on materials, but also a vast savings on the floor space needed to store those materials. Customers are now able to receive what they need, when they need it, and in proper working condition.
“Any time I have a project, a problem, or a need to get something done in a timely, and efficient fashion related to our business, my first thought is always SCMEP. The staff is excellent to work with, and they are not happy until you are happy. The staff is always professional, and when I do projects with SCMEP, I know that they will always “over deliver” on what was promised. They have been a great resource and will continue to be an integral part of our business.”
“SCMEP is not a theoretical think tank, but a “work tested” group that knows what is going on in the real world of manufacturing. They know how to take a problem, and define and implement solid solutions.” Dennis Dedrick, Manager, Strategic Purchasing, BOMAG
