April 24, 2014
CMP Corp., an Oklahoma City-based independent supplier of replacement compressor parts for HVAC and refrigeration equipment, has received the 2014 Manufacturing Leadership Award (ML Award) in Operational Leadership from Frost & Sullivan's Manufacturing Leadership Council. The award recognizes CMP’s lean manufacturing initiative, a comprehensive, systematic, and multiyear effort to eliminate waste and generate cost-efficiencies across the company.
The initiative, which began in 2009, included workforce training in lean best practices through manufacturing industry alliances in Oklahoma and implementing NetSuite cloud ERP to replace an on-premise visual manufacturing application and Microsoft SQL server database. Using lean principles of eliminating waste, CMP overhauled its manufacturing plant, implemented new optimizations in production and inventory control, and reduced its in-house server count from 10 to two while avoiding the cost of one full-time IT professional.
Through the initiative, the company reduced lead-time in its core crankshaft production line from 85 to 10 days, cut crankshaft production costs by 25 percent, and decreased the distance traveled for crankshaft production from 1 mile to 240 ft. These and other efficiencies, including a 90 percent reduction in back orders and 75 percent improvement in IT efficiency, have helped CMP drive double-digit revenue gains.