Full circle: Hymid Multi-Shot has turned its business around
When injection moulding specialist Hymid Multi-Shot clinched the business development and change management prize in the 2012 Manufacturing Excellence Awards, it marked an amazing turnaround at a firm that a couple of years earlier had been struggling for survival.
Hymid’s success was made all the more surprising by its size – it employed 27 people at its Torquay site, with a £2.1 million turnover. Traditionally, small firms had found it hard to devote the time and resources needed to enter, yet alone win, the prestigious competition.
The company worked its way through the rigorous entry procedure because it wanted to get hold of the business improvement and benchmarking report that came as part of the process. The content of this document has been used since to help the company continue to improve quality and productivity.
“Of all the awards we entered, Manufacturing Excellence was the most challenging and thorough. But it was also the most satisfying and ultimately the most rewarding,” says Colin Spencer Halsey, chairman of Hymid.
“Winning and gaining recognition was a fantastic experience, but it was about more than that. We wanted to use the benchmarking data that Manufacturing Excellence provided to help drive our process of continuous improvement. We are an outward-looking company: we want to be informed, and appreciate the value of peer-to-peer learning.”
The Manufacturing Excellence organisers recognise how valuable the benchmarking report is to those who enter. But they also realise that the entry process takes a lot of time and effort, especially for smaller firms with few resources.
So the organisers have made it easier and faster for applicants to take part by producing an online self-assessment tool. Companies still receive a valuable business improvement plan. But because the online assessment tool is intuitive, the entry process has been reduced to four or five hours from what, historically, had been as much as two or three days.
Companies are now asked to complete a business audit looking at various aspects including strategy, supply chain and delivery to customers. The audit comprises 78 core questions, with a business maturity level defined by selecting one of five statements. It can be completed online and is free to use. Feedback is immediate – the online assessment process automatically generates a bespoke business improvement plan.
Hymid thinks these changes will continue to set Manufacturing Excellence apart from other competitions and awards. “I would say to other small companies considering taking part that it is an extremely positive experience. I’d recommend it,” says Halsey.
Turnaround expert who gave Hymid a two-shot in the arm
Not too long ago, Hymid Multi-Shot was a company under pressure. The plastic injection moulding industry in which it operated was price-sensitive and labour-intensive. Its management was risk-averse and it was facing an impending cash crisis, with its overdraft under severe pressure. Then along came Colin Spencer Halsey, a business turnaround expert who saw potential through the fog of difficulties. He took an equity stake in the business and implemented changes.
Halsey identified Hymid’s two-shot injection moulding capability as something that set it apart from its rivals, with the potential to make more complex parts and gain higher margins.
The benefits of the two-shot approach included the ability to manufacture items with two colours, for identification or aesthetic purposes; to remove assembly operations; and to improve sealing by creating a stronger bond between components. It also meant Hymid could become involved in component design at an earlier stage, allowing it to become more of a partner to its customers than a supplier.
The value-added capability of the two-shot technology saw Hymid move away from mass production of plastic parts towards lower-volume, higher-value contracts. Gross margins rocketed and cash flow improved dramatically.
The next step was a relocation, funded from cash, to a more suitable facility in Torquay. And then an investment of £250,000 in machinery helped it to take on further contracts.
Other changes have been made. The early adoption of a manufacturing resource planning system allowed the company to understand the real cost of any contract. This means Hymid now only accepts profitable work. It has recognised quality as a key selling point. It now sets up a library of files for its components, together with samples that have been signed off by the customer. So when a new order comes in, the operator has all the required information to hand and can act more efficiently.
Hymid has embraced social media to raise awareness of its services, and has developed a new website with a blog to encourage customers to keep coming back. It has also forged links with schools, setting youngsters design challenges to get them interested in manufacturing and engineering as a career.