Workforce Training Investment Results in Improved Efficiency and Cost Savings

December 30, 2015 by NJMEP

BACKGROUND:

Dialight (LSE: DIA.L) is leading the energy efficient LED lighting revolution around the world for industrial and hazardous areas as well as transportation and infrastructure applications. For 40 years it has been committed to the development of LED lighting solutions that enable organizations to vastly reduce energy use and maintenance needs, improve safety, ease disposal and reduce CO2 emissions. The company is headquartered in the UK with operations in the Farmingdale, New Jersey; UK; Denmark; Germany; Malaysia; Singapore; Australia and Mexico. 125 people are employed in the New Jersey operation.

CHALLENGE:

Dialight wanted to improve efficiency within its New Jersey facility in order to better support the company’s increase in product demand. In 2011 NJMEP and Dialight began working together to meet the company’s objectives. NJMEP assessed Dialight’s operations to determine the best plan of action to improve efficiency.

SOLUTION:

Following the assessment, NJMEP developed a two-part plan to enhance the company’s procedures and processes using Lean Office, Project Management and Six Sigma Awareness training.

Part 1 of the plan included educational courses on the benefits of lean manufacturing, an explanation of simple tools and techniques for identifying efficient methods of manufacturing, and methods of improving information flow.

After learning these techniques, NJMEP and Dialight reviewed the company processes (including: Order Entry, New Product Design, Inventory Control, Purchasing, Inventory Management, Invoicing, Scheduling, Production Control, Cost Accounting, and General Accounting) and created a map of the company’s current status to serve as a basis to improve processes over the next 4 years.

In Part 2, the Dialight team received training in: Value Stream Mapping w/Implementation, Implementing 5S for Workplace Organization, Cellular Flow Manufacturing w/Implementation, Pull Kanban Systems w/Implementation, Set-up Reduction/Quick Changeover w/Implementation and Total Productive Maintenance

The implementation of lean tools and techniques improved operations and the training resulted in more knowledgeable and empowered workforce. Both of which benefitted the company.

RESULTS:

After completing part two of the training, Dialight reported the following when surveyed by NIST:

$250,000 cost savings
30 new employees
$80,000 invested in workforce training as part of the Skills4Jersey matching requirements
$38,400 saved on workforce training as a result of the Skills4Jersey investment

NJMEP’s Main Service Areas:

Business Development Services
Contingency and Emergency Planning
Destination Innovation
Energy Alliance Program
ExporTech™
Human Resources Solutions
Lean Business Solutions
Quality Management Systems & ISO
R&D Tax Credits
Six Sigma
Supply Chain, Transportation and Logistics Services

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