Annual savings of $900,000 for Large Manufacturing Facility
Industry: Large Manufacturing Facility
“KBS-Varsity achieves annual savings of $900,000”
The Customer was generally happy with the former janitorial provider. The provider was in the sixth year under contract, employed 26,000 people nationwide, and the customer perceived the provider as an expert in manufacturing janitorial services. With car sales down due to the economy, savings in all areas of the organization were necessary—including janitorial. The provider offered potential savings, but they claimed the savings would have to come from less cleaning and service.
The challenge: Despite the provider’s claims, could KBS-Varsity gain savings and improve service using a Lean Sigma approach?
The customer performed due diligence and eventually decided to replace the provider with KBS-Varsity to clean 6 million square feet of office and manufacturing space. In addition, KBS-Varsity managed the cardboard and plastic handling using mobile powered equipment to transfer waste into balers and recycling bins. The customer liked KBS-Varsity’s cleaning system as it matched its own manufacturing system on many points:
- Frontline ownership and involvement in quality and learning
- 8 waste reduction
- systemized cleaning production
- Process mapping and streamlining
- Data-driven decisions
- Visual management of processes.
- Annual savings of $900,000
- Turnover rate was reduced to 10% (industry average is 300%)
- Achieved a 1/1000 complaints-to-calls ratio
- Quality scores increased to an average 90%
- Increased cleaner commitment and motivation which led to
- increased productivity
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