Organizing for the Future
Ted Doudak, President “ITAC benefited me through people, not consulting brochures and presentations. It was really the experience the ITAC team brought to us. My success relies on having my customers close . . . new ideas and new methods keep prices low and quality high. If it’s innovation, you can only make it at your place.”
Riva Precision Manufacturing manufactures chains and other jewelry; they employ 95 people in their Long Island City, Queens facility in New York City.
Riva owner Ted Doudak asked ITAC for help in discovering why there was not a proportional increase in margins and profits.
Developing solutions to the client’s identified “symptom,” uncovered opportunities to make strategic organizational decisions and implement the changes necessary to prime the organization for Riva’s growth and expansion into new markets.
First, ITAC performed an operations assessment that identified opportunities to improve process flow and plant layout. This led to a productivity improvement project focusing on specific cells. ITAC analyzed demand for Riva’s products to identify significant sales drivers, identified key product groups to analyze process flow and batching practices, and developed a conceptual view of process flows.
This started a culture change at Riva. Employees working in the traditional way requested similar cells, reducing duplicate actions and cycle times. Within weeks production was organized into manufacturing cells. When manufacturing a new jewelry design proved challenging, Ted empowered his employees to exercise their experience and tied productivity to a new incentive program.
This success led Ted to want to make further changes to reduce multiple overhead layers and improve his organization’s administrative functions. ITAC helped Riva to implement a better system of financial controls and forecasting and connect the manufacturing operation to the accounting department.
Riva implemented changes that helped to free Ted from managing day-to-day activities and allowed him to focus on driving Riva’s strategic vision for growth; he recognized that the new manufacturing processes could apply to other markets, decided to expand into markets other than jewelry, and rebranded the company to acknowledge this transformation — Riva Jewelry is now as Riva Precision Manufacturing.
In 2011, Riva Precision Manufacturing reported 10 new jobs, a 30-35% increase in production and a 15% reduction in errors as a result of their work with ITAC.