Established in 1975, Central Steel Build is a family owned steel building manufacturer, based in Kyneton, Victoria. The company specialises in all types of custom-made steel shed designs such as home sheds, commercial sheds, agricultural sheds, sheds for sporting, aircraft hangars and more.
The challenge with Central Steel Build was uncovering the build-up of inefficiencies that were holding the business’s profitability down. The business was entrenched in the market of buying and selling domestic garages but wanted to improve its market share for the fabrication of industrial and rural projects.
Central Steel Build needed a clear and concise system for every operation and process within their business, from quoting right through to delivery on site to maintain a tidy, efficiently functioning and ultimately profitable workplace.
Vative introduced a 12-month Lean program focused on streamlining processes and increasing profitability.
Within a year of partnering with Vative, Central Steel Build reaped the rewards of their tailored Lean program achieving:
- An extraordinary 83 per cent increase ($1.8 million) in an emerging fabrication arm of the business
- 50 per cent reduced in errors made in the factory
- 2 weeks eliminated off a standard 8-week lead time per manufacturing project
- Improved visual management such as palling boards and material storage areas
Vative provided Central Steel Build with the value of stream mapping, identifying all areas which impeded on their business’s efficiencies and profitability. After completing a Lean business health check, the company was taught how to apply the 5S methodology (Sort, Set, Shine, Standardise and Sustain) to maintain the mindset of continuous improvement for their own future sustainability.
More than a year on the company still strives to achieve the best performance in all areas of their business. Every week and month, management puts more improvements in place which were originally embedded by Vative.
“The result that we’re most proud of is an incredible 83% increase in the fabrication side of our business, which was previously around only half of what we offered in the market. The dollar value of that improvement is around a $1.8 million increase in a year, which was absolutely huge for us. I could attribute the bulk of that increase to the work we did with Vative.” – Gerald Edmonds, General Manager, Central Steel Build