Project Details
1. Engineering and manufacturing business specializing in aircraft component test equipment in CT
The company has been struggling to increase annual revenues beyond $12M for 5 years in a row despite higher bookings and backlog. Customer project ranged from $200k to $1.2M. Deliveries were significantly behind schedule. The goal was to set the path for on-time delivery in 1 year and doubling revenues in 3 years. Major initiatives included:
2. Contract manufacturer of aircraft engine components in CT
Diverse manufacturer producing sheet metal and machined components as well as rubber and plastics components with niche capability in bonding metal with rubber/plastic parts. $18M sales, negative cash flow, $8M tax liability. Major initiatives included:
3. Manufacturers of access identity products in Switzerland, unit of $600M division
4. Developer and distributor of access control readers in the Netherlands, unit of $600M division
Post acquisition integration, including:
5. Manufacturers of custom identification and access cards in Austria, unit of $600M division
6. Fabricator of sheet metal components for aerospace and medical devices in the northeastern US
7. Manufacturer of commercial springs, orthodontics and medical wires in the US
8. Manufacturer and integrator of plastics auxiliary equipment in the Americas, $120M
9. Developer and distributor of orthopedic spinal surgery products in North America, $250M
- Improved space utilization 12% increase
- Less purchase orders 35%
- Less work for accounting 16% reduction
- Less inventory on hand 53% reduction
- Improved fill rates from 76% to 94% for same day shipment
10. Designer and manufacturer of biosciences instruments in North America and Europe, $1100M
11. Manufacturer of aluminum investment castings and integrated machining in the US
12. Manufacturer and distributor of plastics machinery in the Americas, $80M
13. Developer and distributor of leather products for major retail brands and stores in the US, $85M
Assessed warehouse operations to evaluate the need for additional warehouse space and potential for improving productivity:
14. Maker of plastics injection molds in the northeastern US
15. Fluid power division of global market leader headquartered in Germany
16. Additional engagements
The company has been struggling to increase annual revenues beyond $12M for 5 years in a row despite higher bookings and backlog. Customer project ranged from $200k to $1.2M. Deliveries were significantly behind schedule. The goal was to set the path for on-time delivery in 1 year and doubling revenues in 3 years. Major initiatives included:
- Restructured organization into product focused multi-disciplined engineering and systems integration teams
- Upgraded the entire middle management team to broaden leadership capabilities
- Developed a strategic deployment plan to focus the organization on key improvements
- Rationalized project management processes to essential leadership requirements and empowered team leaders to direct teams and report progress self-sufficiently
- Analyzed product offering, profitability and order mix and implemented sales pipeline management process to proactively plan project resources and budget requirements
- Renegotiated MRO customer contracts to recommit project budgets and schedules
- Established OEM focused initiatives to engage in early product test developments ahead of MRO
- Increased revenues by 25% to $15M in the first year and established resources plan and budgets for 35% increase in the second year. A half year in, they are on target to achieve plan.
2. Contract manufacturer of aircraft engine components in CT
Diverse manufacturer producing sheet metal and machined components as well as rubber and plastics components with niche capability in bonding metal with rubber/plastic parts. $18M sales, negative cash flow, $8M tax liability. Major initiatives included:
- Established product/process focused business units including customer service, engineering, production resources, and operational and financial performance reporting
- Implemented production flow processes and self-directed management to reduce costs; shortened product deliveries and increased cash flow
- Analyzed product profitability and re-negotiated pricing contracts with major OEM’s
- Secured bridge financing to prevent default on additional bank and other payments
- Sold the company to a private equity firm through bankruptcy proceedings
- After restructuring of balance sheet and debt, the company is operating profitably
3. Manufacturers of access identity products in Switzerland, unit of $600M division
- Restructuring after CHF 10 million loss.
- Total 5 product lines, 4 production and 1 distribution.
- Outsourced 2 of the 4 production product lines (18% of sales ) converting to distribution.
- Reduced facility space requirements by 50%
- Closed small subsidiary in Germany moving customer service, distribution, and production.
- Reduced total headcount by one third.
- Accomplished 10% EBITA after 12 months.
4. Developer and distributor of access control readers in the Netherlands, unit of $600M division
Post acquisition integration, including:
- Increase product offering to North American market and sales potential by 50%.
- Move of US customer service and distribution from PA to CT distribution center.
- Move of production from NL to lower cost contract manufacturers in Asia to offset exchange rate challenges.
- Implement European distribution through UK distribution center.
- Integration of customer service into German sales operation.
- Integration of product development with British and American resources.
5. Manufacturers of custom identification and access cards in Austria, unit of $600M division
- Restructuring and divesture after Euro 1.2 million loss.
- Planned, initiated, and executed restructuring to break even after four month.
- In parallel, initiated and negotiated divesture and closed sale after 5 months.
6. Fabricator of sheet metal components for aerospace and medical devices in the northeastern US
- Business challenges included cash flow, long and unpredictable lead-times, customer dissatisfaction and weekly on-site audits, decreasing revenues, and increasing costs.
- Implemented short term action plan improving production throughput-time and manage customer communication proactively, reversing trends and reaching record shipments and profits after two months. Invited customers to review short term accomplishments and to present mid-term improvement plan.
- Then initiated long term strategic operations planning and deployment.
7. Manufacturer of commercial springs, orthodontics and medical wires in the US
- Conducted product line and customer demand pattern analysis.
- Determined potential gains by reducing inventory, AR, and costs.
- Trained personnel and facilitated implementation of flow production at two plants.
- Helped to develop and offer supply chain services to key customers.
- Established performance metrics for management and production personnel.
- Reduced lead-time and inventory, and improved productivity.
- Implemented operational performance and financial metrics by product group.
8. Manufacturer and integrator of plastics auxiliary equipment in the Americas, $120M
- After acquisition, moved business unit located in CT to a larger facility.
- Separated manufacturing division from main business unit in IL and relocated to CT.
- Integrated the two business units and implemented management reporting for IL headquarters.
- After a new product line was acquired in Italy, added product importing, application engineering, customer service, and spare parts business operations.
- Added application engineering, customer service, and part sales business operations for representation of a new product line from Germany.
- The CT plant became the most profitable out of six plants.
9. Developer and distributor of orthopedic spinal surgery products in North America, $250M
- Prepared plan to reverse the trend of increasing inventories, requirement for more cash, lower fill rates and lost sales.
- Developed a supplier collaboration program.
- Implemented co-managed inventory.
- Rationalized procurement process providing supplier production requirements over a web interface (no purchase orders or sales orders required).
- Results:
- Improved space utilization 12% increase
- Less purchase orders 35%
- Less work for accounting 16% reduction
- Less inventory on hand 53% reduction
- Improved fill rates from 76% to 94% for same day shipment
- Business grew from $19M to $96M in 3 years without requiring venture capital and was sold for $333M, becoming the largest privately held deal in the industry.
10. Designer and manufacturer of biosciences instruments in North America and Europe, $1100M
- Prepared plan to reverse the trend of increasing inventory and costs.
- Developed an improved operations and business process framework to:
- Reduce the risk for obsolete inventory and to lower the cost of inventory administration. Increase output by up to 50% without significant increase in materials administration.
- Better utilize production resources - nearly double output without significant increase of production resources.
- Improved utilization of space, increase output by 25-50% without requiring more space.
- Shorten product delivery times by 20-50% and improve on-time delivery.
- Improve efficiency and profitability, and customer service leading to increased revenues.
11. Manufacturer of aluminum investment castings and integrated machining in the US
- Prepared plan to reverse the trend of increasing lead-time and backlog.
- Implemented flow metrics to measure performance and lead-time.
- Implemented first pass yield metrics to isolate bottlenecks and productivity losses.
- Implemented improved production flow and reduced work in process.
- Reduced casting production time from 14 weeks to 3 weeks and improved productivity.
- Improved sales per employee from $134k to $195k in one year.
- Eliminated the need for a $200,000 plant addition and enabled plans to grow shipments to 450% before a facility expansion is needed.
12. Manufacturer and distributor of plastics machinery in the Americas, $80M
- Prepared plan to reverse trend of increasing inventories and lead-times for 16 product lines.
- Established value streams incorporating fabrication operations and assembly operations.
- Converted labor-intensive production documentation to standard work procedures.
- Made recommendations to rationalize design of product line options and components.
- Moved decision point for product options from early fabrication operations to late assembly operations.
- Reduced lead-time and inventory, and improved productivity.
13. Developer and distributor of leather products for major retail brands and stores in the US, $85M
Assessed warehouse operations to evaluate the need for additional warehouse space and potential for improving productivity:
- Identified potential to improve throughput time of picking, packing, shipping operations and to triple current warehouse storage capacity if necessary.
- Implemented picking, packing, shipping cells reducing space by 40% and improving productivity by 30%. Warehouse or storage expansion became unnecessary.
- Determined requirements to improve retail ticketing information flow and quality between sales offices, warehouse operation, and offshore manufacturing.
- Implemented improved order entry process and information flow with clear responsibilities and status management.
14. Maker of plastics injection molds in the northeastern US
- Improved business process framework to better support operations needs for information.
- Selected and implemented a new ERP system.
- Recommended new organizational structure to vitalize management decisions and information flow.
15. Fluid power division of global market leader headquartered in Germany
- Industrial market research and competitive analysis in North America.
- Recommendations to improve market presence in North America.
- Identification of potential acquisitions.
16. Additional engagements
- Global brand of sewing machines located in the northeastern US
- American brand of wire and cable management products located in the northeastern US
- Global brand of sheet metal fabrication equipment located in the northeastern US owned by German conglomerate
- Northeastern US manufacturer of medical product components
- American contract manufacturer of medical products
- Global manufacturer of aircraft engines
- Global maintenance management provider for aircraft engines
- and more