The Company
Virginia Plastics Company (VPC) is a fifty-year-old, family owned business in Salem, VA, with a staff of 50. VPC manufactures electronic connections for the medical, aeronautics, and communications markets, and plastic components for the electric utility industry. Many of the products sold by VPC are patented, innovative designs created by various family members. In recent years, the company has had difficulties achieving its profit goals due to an increase in demand for several products that changed from a one source specialty item to a commodity product, a decline in the electronic sector demand, and a stagnating demand in above-ground utility products.

The Situation
With a change in management, VPC began taking action to stem the decline in business and rebuild the company. The new management sold off a product line that had absorbed enormous management attention while yielding low profits. Plans were underway to move the remaining core business to a more suitable and efficient building while concentrating on planned and controlled growth in the remaining product lines. In preparation for this move, VPMEP was put to the challenge of providing a study of the existing operations and equipment, to investigate the new location, and determine an economical production layout. VPMEP is not new to VPC, having previously worked on a number of successful projects together.

The Response
VPMEP recommended a three-stage solution process. The work was based on the analysis of data and measurements of production volume, the flow of material through the production process, equipment maintenance requirements, yield rates, and manpower requirements. The first stage involved a review of the existing equipment and production layout. The purpose of this phase was to gain a clearer understanding of the key elements in the production process and identify the critical constraints. The second stage was to investigate the proposed new facility and identify any significant features that would be notable to the new layout. The final stage was to develop a new arrangement for the production lines by locating work centers to reduce travel time and major flow constraints, and to identify any building modifications needed to accommodate the equipment.

The Results
VPC experienced a major increase in productivity, throughput was increased, and the new plant layout decreased travel time by 75%. The company had their highest monthly shipment volume in two years just one month after moving into the new facility.

Management's Comment
"We have benefited greatly through our partnership with VPMEP over the past three years," said James Hancock, President. "I feel that they are able to supply a valuable and affordable alternative in the engineering and marketing fields to small businesses. I would recommend their services to anyone with limited resources and expertise, and sometimes it's a boost to have a fresh perspective."

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