Tacony realizes $500K in revenue through Smart Factory

Within months of implementing Nulogy Smart Factory, Tacony gained the production data visibility needed to cut down a 14-week order backlog to less than 6 weeks—realizing approximately $500,000 in order revenue. The data visibility enabled by Smart Factory also led to more efficient daily reporting and more empowered staff on the plant floor.

 

The Problem:

Before implementing Nulogy Smart Factory, Tacony’s West Chicago furniture plant was wrestling with a 14-week backlog due to production inefficiencies, representing hundreds of thousands of dollars of unrealized revenue. The facility needed insight into their production metrics and as well as the data to understand what changes were needed to generate the necessary output to cut down on the order backlog.

Outcomes:

With the tangible real-time data provided by Nulogy Smart Factory, Tacony was able to reduce lead times by 150% while also realizing a 9x return on their investment. In a matter of months, the West Chicago plant cut down their order backlog down to 6 weeks—more than half—realizing more than $500,000 in revenue.

After implementing Smart Factory, Tacony also observed benefits in the following areas:

Real-Time Data Reporting: With the introduction of Smart Factory, Tacony is now able to collect and report on production data in real-time, helping prioritize action items throughout each work day. “I receive emails about the previous day’s performance every morning at 6 am and I can see what happened yesterday,” says Nick Hinman, Vice President of Corporate Strategy at Tacony. “I can quickly compartmentalize what I need to be worried about on any given day, and I can follow up for more detailed updates on what’s causing the issues.”

Extended Order Visibility: “What we’ve always lacked is knowing how efficient we are on the warehouse level,” says Hinman. Now, Smart Factory provides Tacony with a fuller picture of how efficiently the company’s product moves through the plant to the warehouse, and eventually, to the hands of customers.

Staff Empowerment: At Tacony, Smart Factory is also leveraged as goal tracking software to understand what is going on at the operational level, and as a way for operators to measure and control their own progress throughout a shift.

By using visual scoreboards on the plant floor, operators can easily see how they’re doing from a quick glance–showing how production data is empowering the people who power the plant floor.