Dimensions of Value – How Much, How Fast and HOW CERTAIN? A Case Study

Executives today are constantly challenged by the need to perform and drive financial metrics and at the same time transform in order to drive growth and mitigate risks.  We are no different at Jenfab.  We pride ourselves on understanding your cleaning challenges and finding creative ways to help you solve them in today’s business environment. We understand that not every customer has the same challenges.  

A common concern we hear about is the high cost of capital and interest rates.  For many executives, this leads to anxiety over the CERTAINTY of the value they will receive from the investment.

With elevated interest rates, the cost of financing a major purchase has increased significantly. Executives must ensure the return on investment (ROI) on the new equipment or facility significantly exceeds this higher cost of capital, making investments inherently riskier. You might be concerned about the certainty of value for the capital invested.

We use our domain knowledge combined with years of experience working with a diverse group of industries to understand where there are opportunities to be part of your value chain and not just a cost.  We will set targets with you and then we will track achievement.  Here are a few examples of areas we have impacted:

Case Study #1 – throughput increases in same footprint

At a battery component manufacturer, the cleaning machinery was aging and unable to keep up with ever-increasing order volumes. Our system was able to increase production by more than 50% in a comparable footprint, growing their daily production capacity from 11m pieces to 17m pieces and allowing them to eliminate weekend overtime for cleaning operations.

Case Study #2 – creating new value resulting in premium price

Utilizing our cleaning solution, a gutter hanger manufacturer was able to sell their product for $0.06 more per piece by being the first company among their peers to offer cleaned gutter hangers out of the package. During the first year of operation, our solution helped the client deliver $360,000 of top line revenue per year. Today, that same client now has four of our systems in place generating north of a million in revenue per year.  

Case Study #3 – reduced shipping costs and increase revenue generation

Previously, our client in the consumer goods industry was shipping product from all around the United States to a centralized cleaning hub, resulting in significant shipping costs. Our solution to build smaller, dedicated machines for regional facilities rather than large units for a centralized hub allowed the client to reduce shipping spend for cleaning operations by 40% annually. This also reduced the turnaround time for their product to be back in the field by 15%.

Case Study #4 -Creating Opportunity for Increased Revenue

Faced with an aging cleaning machine that was incurring $50K a year in maintenance costs and taking up more than 1,500 sq ft. of manufacturing space, a client in the industrial metal components industry was looking for a solution that could produce comparable volumes while taking up significantly less floorspace. With a space requirement of only 1,000 sq. ft., our solution produces a cleaner part while freeing up just over 500 sq.ft. of factory space for other operations. This square footage reduction makes $300K/year worth of revenue generating floor space available that the client now uses for other operations.

We are confident that we can help you achieve your business goals with our approach to documenting return on investment.  If you want to talk to a Jenfab expert, give us a call at 417-866-8855.