Million pound turnover boost for Mechan

ENGINEERING firm Mechan has increased its turnover by £1m and created new jobs following help and advice from the Manufacturing Advisory Service (MAS).

The Sheffield-based firm, which is one of the UK’s leading manufacturers of specialist rail equipment, has reviewed its outsourcing strategy, supply chain and manufacturing process as a result of the consultation.

According to managing director Richard Carr, who led a management buyout of the firm with three other directors in 2007, it was a mailshot from MAS that inspired him to give them a call.

“I come from a service driven environment and wanted advice on the manufacturing aspect of the business,” he said.

“I encouraged consultant Mike Brook from Brook Corporate Developments to speak to as many of our people as possible and find out where we could make changes which would benefit the business.”

Mr Brook carried out an initial improvement project, which included assisting Mechan to outsource major engineering components such as shotblasting and painting, thereby allowing the company the focus on assembly.

The firm, which employs 21 staff and is on target to achieve a £2.5m turnover this year, also identified alternative sources of supply for crucial components such as fabrication to strengthen its supply chain.

A move to new factory premises was made as a result of the review and Mr Brook was able to help plan best layout and assist with logistics for the move to reduce disruption as much as possible.

“The move went very smoothly and we have have a smaller more efficient factory, which has the capacity to increase our turnover and will generate a 350% improvement in throughput per metre,” said Mr Carr.

“We have also taken on two new members of staff this year including a production manager who is experienced in manufacturing techniques including 5S and ‘lean’ with another appointment imminent.”

Recently, Mechan has won a clutch of overseas contracts including lifting equipment for the Dubai Metro.

The firm is also diversifying its product range and now supplied lifting gear for use on the top of gas storage tanks, which it has exported to the Middle East.

Mr Carr added: “Having MAS on board over the past couple of years has been really beneficial.

“We are confident the improvement in the factory layout and sub-contracting will lead to a £30,000 improvement in value added.”