Applying Lean Principles: Short-Term Gains, Long-Term Value Creation Engine

Top-Down Commitment, Enterprise-Wide Results

The building products industry has been under immense pressure from rising material costs, persistent labour shortages, and the need to deliver innovative, sustainable solutions in the face of tightening environmental regulations. At the same time, economic headwinds, including continued high interest rates, have forced manufacturers to refocus on operational resilience and long-term value creation. For this company—a diversified building products leader with global reach—this environment provided both urgency and opportunity. Following its 2022 acquisition, the company’s new leadership team set an ambitious vision: transform operations through lean principles, unite teams across its North American sites, and unlock more than $20 million in productivity and efficiency gains.

Challenge

New leadership set bold transformation targets, aiming to drive efficiency, align teams across multiple sites, and build a roadmap for long-term value creation.

After being acquired in 2022, the company installed a new senior management team that was determined to identify and execute on value creation opportunities. Led by its new CEO, it set an ambitious goal of realising more than $20 million in productivity gains through operational improvements, and prioritised efforts to get its entire team across multiple sites to get behind the transformation. TBM visited several of the company’s core sites to observe and get a fuller view of potential challenges and opportunities, and together with the management team began to build the plan.

Solution

Partnered with management to launch lean-driven initiatives, establish a CI function, and empower local site leaders to identify high-value improvements while embedding a culture of performance.

This work exemplifies the power of leveraging lean principles and methodologies to engage the entire team in the improvement journey and to lay the foundation for sustainable results. One of the key success factors was the commitment shown by the company’s executive team from the beginning and their willingness to walk the walk in terms of being actively involved and engaged. They set the tone and it made a qualitative difference.

Working closely with the management team, we established overarching goals and executed a series of first-wave initiatives and events across all sites which drove awareness and engagement and helped lead to success.

We worked with each site leader on two key priorities:

  1. Identifying areas where improvement could deliver high-impact, immediate value
  2. Establishing ing a lean/continuous improvement (CI) function by instituting a sustainable CI programme

Results

The 18‑month plan achieved over $7M in savings, trained leaders in CI practises, implemented a lean performance system, and restructured the organisation, fuelling growth, engagement, and market expansion.

“Best of all, the workstreams collectively generated more than $7 million in savings, showing the potential value that a larger-scale effort could produce.”

Client’s Plant Manager

  • Eighteen-month plan drove annualised savings of more than $7 million across key areas, including labour, operations, and processes and procedures.
  • Completed lean/continuous improvement (CI) training on an accelerated track, including specialised training for 32 employees across nine separate facilities. This group then worked as an internal team to identify and implement projects which generated an additional $2 million-plus in savings. Longer term, these improvements enabled a continuous improvement culture at their home sites.
  • Implemented new, lean-focused performance management system that improved engagement, accountability, and problem-solving skills.
  • Streamlined organisational structure completed in early 2025 allowed business to drive value, continue to invest in core areas (sales, R&D, engineering, manufacturing), expand into new markets, and gain market share.

Topics in this Case Study

At a Glance

Client

Diversified building products manufacturer specialising in creating and restoring high-end residential, multi-family, and light commercial structures.

Results

  • Eighteen-month plan drove annualised savings of more than $7 million.
  • Completed lean/continuous improvement (CI) training on an accelerated track.
  • Implemented new, lean-focused performance management system that improved engagement, accountability, and problem-solving skills.
  • Streamlined organisational structure completed in early 2025 allowed business to drive value, continue to invest in core areas, expand into new markets, and gain market share.

Win Faster with TBM.

Let’s start a conversation about operational speed.