Industrial Pipe Manufacturer Unlocks $1.7M in Operational Benefits Without New Capital

Operational Benefits Unlocked Without New Capital

A family owned industrial manufacturer of large underground drainage pipe operates multiple facilities across the U.S. and runs its flagship plant 24/7 to meet strong market demand. Despite being fully sold out, the company struggled with operational efficiency resulting in: decline in output due to low OEE, inefficient changeover time, high scrap rates, and a reactive, firefighting driven culture. With labor and overtime already maxed out, leadership faced a critical decision: invest in new equipment or unlock capacity from existing assets. The company needed a disciplined operating system—one that could make performance visible, reduce variability, strengthen execution, and sustain improvement without additional capital investment.

Challenge

Sold Out Demand, Limited Capacity: A 24/7 Operation Struggling with Low OEE and Reactive Execution

Despite strong customer demand and a fully sold out production schedule, the organization was unable to increase output. Operating 24/7 eliminated labor and overtime as viable levers, forcing leadership to confront a critical question: invest in new equipment or unlock capacity from existing assets.

Performance data pointed to systemic issues rather than equipment limitations were consuming valuable capacity every month:

  • Excessive changeover times
  • Elevated scrap rates
  • OEE operating near 50%

Compounding the problem was the absence of an effective management system to drive operational efficiency. Leaders and operators were locked in a reactive, firefighting mode—driven by tribal knowledge, informal escalations, and inconsistent performance measurement—leaving little opportunity for sustained improvement or confident capital decision making.

Solution

Building a Disciplined Management System to Unlock Hidden Capacity

TBM began with a focused operational diagnostic to identify the root causes of capacity loss and determine whether existing assets could deliver the required ROI without new capital investment. The analysis revealed systemic issues:

  • Inefficient changeovers,
  • Reactive management behaviors, and
  • Limited visual accountability.

In response, TBM recommended and worked with the client’ team to implement:

Together, these changes replaced firefighting with execution discipline—unlocking hidden capacity and creating a foundation for sustained performance improvement.

Results

Measurable OEE Gains, Capacity Unlock, and Sustained Financial Impact

Over a three month implementation period, TBM helped the organization achieve meaningful, durable improvements across OEE, scrap reduction, throughput, and financial performance—proving the changes were systemic, not short term interventions.

  • Scrap rates dropped from approximately 16% to 12%, reducing cost and freeing up productive capacity.
  • Throughput increased by 347 pounds per hour overall, with top performing SKUs realizing gains of nearly 3,000 pounds per hour.
  • Translating to more than $1.7M in annualized value at sustained performance levels.
  • OEE improved and remained elevated after implementation, signaling that new management routines and execution discipline were embedded into daily operations.

In total, the engagement generated $743K to $1.7M in benefits within the initial three months, delivering a compelling return without new capital investment. Just as importantly, the success of the work led to expanded scope, including inventory management and broader management system deployment across additional facilities—extending impact beyond the original engagement.

The work did more than improve metrics. It shifted the organization from reactive firefighting to proactive execution—creating a more capable operating system where leaders lead, operators solve problems, and the business can confidently grow into demand.

Download Full Case Study

Frequently Asked Questions

How can a manufacturing plant increase capacity without investing in new equipment?
A manufacturing plant (even a fully sold out plant) can increase capacity by eliminating systemic losses embedded in daily operations rather than adding equipment. In this case study, capacity was unlocked by improving changeovers, reducing scrap, stabilizing OEE, and implementing a disciplined management system that made performance visible and repeatable. By recovering lost time, yield, and execution discipline from existing assets, the company increased output without new capital investment.
What are the most common causes of low OEE, high scrap, and lost throughput in 24/7 manufacturing operations—and how can they be fixed?
In 24/7 operations, low OEE and lost throughput are often caused by inefficient changeovers, inconsistent performance measurement, elevated scrap, and reactive management behaviors. These issues persist when operators and leaders rely on tribal knowledge and ad hoc problem solving rather than standard processes. Fixing them requires standardizing work, creating reliable OEE measurement, visually managing daily performance, and solving problems at the root instead of reacting to symptoms.
How can a management system reduce firefighting and drive sustained operational improvement?
A management system reduces firefighting by replacing reactive escalation with structured daily routines, visual performance management, and clear accountability. Tiered daily management enables leaders and teams to review performance, identify issues early, and assign ownership before problems grow. When combined with structured problem solving, the system shifts the organization from reacting to issues to preventing them—making improvements sustainable.
What operational improvements can deliver measurable financial benefits without new capital investment?
Financial benefits can be delivered by improving throughput, reducing scrap, stabilizing OEE, and shortening changeovers on existing equipment. In this case study, those improvements generated between $743K and $1.7M in benefits within three months, with over $1.6M in annualized value from sustained throughput gains. The key was disciplined execution and management systems—not capital spending.
How do manufacturers build a scalable operating system that sustains OEE gains across multiple facilities?
Manufacturers build a scalable operating system by standardizing management routines, performance measurement, and problem-solving methods across plants. By creating consistent Tier 1 and Tier 2 meetings, visual management boards, and common OEE definitions, improvements become repeatable rather than site specific. In this case study, the durability of results led the company to extend the operating system to additional facilities, allowing gains to scale enterprise wide.

Topics in this Case Study

Effective ExecutionProblem SolvingLean TransformationMaintenance ExcellencePerformance Improvement

At a Glance

Client

Family-owned manufacturer of drainage pipe

Results

  • Reduced scrap by 25%
  • Improved throughput of the top 20 performing SKUs translating to $1.6M in annualized value
  • Total estimated benefit up to $1.7M in the first three months
  • Extended project to inventory management and management system
Download Full Case Study

Win Faster with TBM.

Let’s start a conversation about operational speed.
Contact Us
Retargeting - Free Operational Assessment-1