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Case Studies > Customer Success Story - WoW ProjeCt JobBOSS Empowers: Roncelli Plastics

Customer Success Story - WoW ProjeCt JobBOSS Empowers: Roncelli Plastics

Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Functions
  • Discrete Manufacturing
  • Sales & Marketing
Use Cases
  • Manufacturing System Automation
  • Predictive Maintenance
Services
  • System Integration
The Challenge
Roncelli Plastics, a successful plastics machine shop, faced a significant decline in profitability after September 11, 2001. The company's management lacked transparency, and there was no clear understanding of revenue by sales rep or new customer profitability. By the end of 2001, the company's margins were thinning, and markets were shrinking, putting the future of the business at risk. The company's owner, Gino Roncelli, was determined to ensure the company's future and began to consider changes in the company's philosophy and operations.
About The Customer
Roncelli Plastics, Inc., based in Monrovia, California, is a plastics machine shop that has been in operation for 38 years. The company has carved out a niche in the industry by working on materials that other shops found risky and unprofitable. The company has weathered various industry changes, from the defense boom in the 1980s to the military base closings in the 1990s to the airline industry’s ups and downs. By the year 2000, the company had a sales volume of $8.5 million, employed 80 people, and served a range of industries from semiconductors to aerospace to food and medical.
The Solution
In 2003, Roncelli began a transformation of the company, starting with strategic planning meetings and a review of every position in the company. The company devised a ten-year business plan with lofty goals, emphasizing the generation of ideas, sharing of information, and mentoring. The company also deepened its use of the Exact JobBOSS business management software, which it had implemented in 1994. The software was used to provide accurate data to support the company's transformation. In 2004, the company began using data from JobBOSS to identify the most profitable and fast-growing segments of the industry. The company also used the software to track employee performance and improve communication and customer service.
Operational Impact
  • The company's on-time delivery rate has climbed 10% a year since 2004 and now hovers at 97–99%.
  • Lead time on a job has lowered to three weeks or less, down from 4–6 weeks in 2001.
  • The company has maintained its emphasis on diversity, with its largest customer accounting for less than 10% of the business and its largest industry, aerospace, accounting for less than 15%.
Quantitative Benefit
  • Sales volume resumed its steady growth, moving from $5.5 million in 2001 to $11.5 million in 2007, with an average increase of 10% a year.
  • In 2006 alone, business at the shop increased 34%, with profits up 17%.
  • The company's quote-job-ratio (hit rate) increased from 53% in 2005 to 61%.

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