The company that would someday become Cart-Away Concrete Systems began its manufacturing journey over 50 years ago in San Jose California as McClintock Metal. Since that time the company moved to Sacramento, shifted its product line, changed its business model and transitioned ownership. In 2004, the company moved to McMinnville, Oregon. For the last several years they have been operating as a leading brand in the trailered concrete mixer industry.
Success Story
Cart-Away Concrete Systems
Industry
CONSTRUCTION
Location
MCMINNVILLE, OR
Date Founded
1966
Number of Employees
10
Background
Cash Flows
Improved Through Effective Estate Planning
10 Jobs
Created and Retained
100%
Retained Sales
The Situation
In the past Cart-Away allocated a large portion of its singular component manufacturing processes to reputable contract manufacturers in their local area, focusing their efforts on the fine details of product development, assembly and customer support. However, to remain a dominant leader in their industry they knew that this wasn’t the most sustainable way to operate. In the hopes of mitigating margin erosion and increased competition, the Cart-Away leadership team deemed it necessary to bring some essential manufacturing functions back in-house.
The Solution
Cart-Away leadership reached out to OMEP for assistance in implementing their plans to bring manufacturing in-house, seeking analysis of various strategies and guidance on the options that contribute best to their plans for their family and business. OMEP conducted a feasibility analysis to determine go-forward manufacturing protocols related to contract manufacturing vs. scaling of In-house manufacturing. To perform this analysis OMEP utilized Value Stream Mapping (VSM), which is a lean-management method for analyzing the current state. Additionally, OMEP conducted product mapping to understand all of the products that go in and out of the CartAway processes so they could better understand capacity needs for the future as well as equipment needs labor needs.
This process not only identified current states but also highlighted non-valued/value-added activities related to using contract manufacturing vs. in-house manufacturing. OMEP also partnered with Cart-Away to create a Future-State manufacturing VSM which included internal manufacturing options, financial modeling, facility layout, and capabilities analysis while keeping equipment needs, lead time and supply chain requirements, as well as staffing needs in mind.
The Results
As a result of adopting the recommendations with OMEP’s assistance, Cart-Away saw immediate improvements. The company retained 100 percent of their sales. By reducing overall waste through improved processes and a more versatile supply chain, Cart-Away was able to create and retain 10 jobs. Employees are able to better apply their time to value-added business activities. Cart-Away is retaining profits and has improved cash flows through effective tax and estate planning. Capturing open capacity for future growth has positioned Cart-Away as an industry leader.
Are you interested in bringing manufacturing in-house, building a new business strategy, and improving your workforce? OMEP can help.
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We have enjoyed working with OMEP and the consultants they have provided. Shelia Cyler has been very helpful in assisting us to understand our processes and working with us to find improvements. We look forward to continued work with OMEP on our plans for the future.