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The company turned to MAS when it needed advice on developing a new product costing system in order to accurately allocate variable and fixed costs to each job.
Says managing director Mike Byrne: “We needed an accurate costing system in order to calculate which jobs were making us profit and which were losing us money. We called in the help of the London Manufacturing Advisory Service (MAS).”
Nigel Rust, manufacturing specialist at London MAS said: “I used the London MAS network to find and work with Frank Doyle from Soloman, a specialist in engineering costing processes. The changes in the costing system enabled the company to make pricing decisions and improve financial control resulting in an increase in profitability, turnover and value added.
“After putting into place a working costing system we performed a lean diagnostic and calculated that Colourite Metal Treatment’s biggest cost was energy. We introduced some lean techniques and reduced their scrap and defect rate by 50% reducing energy costs by 12%.”
Mr Byrne added: “This is the best programme we have ever been involved in, the results are amazing and we have seen rapid improvement in profit.”
