Follett Corporation and the Lean Consortium

Company Profile
Follett Corporation is a designer and manufacturer of commercial and institutional ice making and dispensing equipment and ice storage bins. They were established in 1954, have 160 employees and are located in Easton, Pennsylvania.

Situation
The company requested help analyzing and projecting their future space needs.

Solution
"Two things were going on," Dick Donati, Lean Manufacturing Manager at the Manufacturers Resource Center (MRC) notes. "They were bringing in a new piece of equipment and anticipating growth over the next few years." We conducted a study that determined they had enough space and as a result, the company avoided $1.6 million dollars in capital expenditures." Donati also helped Follett determine optimal placement of its new laser cutter, which he says had a major impact on the company's entire manufacturing flow. "It's the first operation of the whole process and it had to be placed in the right location to minimize handling and maximize material flow throughout the rest of the factory," he says.

Results
As a result of this assistance, a building addition worth approximately $1,000,000 was deferred for at least three years. Also, operating costs of $200,000 per year were avoided because the building was not required. Therefore, a total of $1,600,000 of expenditures was avoided.

Testimonial
"The process of developing a Lean Enterprise is an evolutionary one, that is essential to competitive success into the new millennium. It's a process that takes a long time and an effort to do it right. We have been adopting lean principles over the past few years and have taken part in the MRC Lean Consortium. We lend our experiences, and hear what others' experiences are. It is a great way of sharing what you would have done the same and what you would have changed."

Steve Follett
CEO