SRM Industries

Leading Derbyshire manufacturer SRM Industries has overhauled its systems in a bid to fight off international competition and bring a new product to market. As part of the company’s commitment to Lean manufacturing, a newly introduced ERP system is already set to provide a 20% reduction in costs and 10% boost in output. With a recent breakthrough into the sports market, turnover is up 20% on the previous year and the team is in a much stronger position to cope with its new-found growth.

SRM Industries, which has factories in Derbyshire and Leicestershire, is a leading producer of gaskets, rubber mouldings and metal bondings.
It has over 30 years experience in developing high quality products, but in recent years has seen international rivals muscle in on its territory, offering cheap labour and material costs.

The firm enlisted the support of MAS to review operations and implement a new Enterprise Resource Planning system.

The Manufacturing Challenge

Reducing costs and increasing productivity was the main focus for the SRM Industries management team.

At the same time, the firm was experiencing major surges in demand for its services and were in the early stages of developing a new product for use by sportspeople.

The latter is a silicone pad that is slipped inside specialist socks to help protect the metatarsal – an injury previously suffered by David Beckham and Wayne Rooney.

“We’ve introduced a three-shift system and also staff work in small units or cells, which has improved workflow. Our rubber material has to be cooked or cured to precise consistencies and we have improved efficiency here and reduced maintenance operation times.

The support by MAS has been very targeted and given us the impetus to make the necessary changes to the business that will deliver long-term improvements in performance.”
Martin Spare, Financial Director, SRM Industries Ltd

MAS action

MAS was brought in by SRM Industries to provide a manufacturing review that identified the need to introduce a new enterprise resource planning (ERP) system to manage workflow and provide full traceability of orders.

A £2300 grant was secured towards the cost of the implementation and Manufacturing Advisor Ian Davie has continued to work with the company to install a new business management system.

This allows everyone – from purchasing and production to sales and marketing – access to real time information, thus improving customer service and preventing tasks being unnecessarily repeated

Results

“On a like-for-like basis our costs are always going to be at least three times higher than those of factories in the Far East, so we had to find other ways to compete. MAS’ ability to help us explore and achieve efficiencies across the business has been invaluable and ensured we remain competitive on a global scale.”

Martin Spare,
Financial Director
SRM Industries Ltd

The ERP system has only been in place a few months, but is already helping SRM achieve a raft of efficiency savings in key business areas.

Early indications suggest a 20% reduction in costs, whilst manufacturing output is set to rise 10% this year with a number of new projects successfully coming on line.

The new software is part of a bigger commitment to lean manufacturing and this is something MAS will continue to provide on the ground support for.
Boosted by increased productivity and the breakthrough into the sporting market, SRM Industries has announced £4.5m of sales for the last financial year – a 21% increase on 2011.

  • Turnover has increased by 21% to £4.5m
  • The ERP system is on course to provide the company with 20% efficiency savings and a 10% increase in output
  • New silicone pads for specialist socks launched

Overview

Employees: 72

Turnover: £4.5m

Sector: Industrial gaskets and rubber mouldings

Location: Derbyshire and Leicestershire

Advisor: Ian Davie


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