Restructuring can dramatically impact your bottom line
In these difficult economic times, manufacturers are counting every dollar. If you’ve been through a series of improvement efforts and nothing seems to be enough, it may be time to take a serious look at operational restructuring. It could be the lifesaver your organization needs.
Changes in your operations can quickly and dramatically impact cash flow and your bottom line.
Whether you are restructuring your operation to reduce cost, to prevent bankruptcy, or as part of bankruptcy, you can call on our experienced consulting team to drive the changes necessary to reduce cost and have a viable operation.
Seasoned operations restructuring experts are key to your success
If you are under siege and need to get your operation functioning at a level of survival, you will appreciate the industry knowledge and hands-on experience of our seasoned operations restructuring experts who can quickly assess your operations and execute a plan that gets you back on track to profitability.
Our operational restructuring experts can help with plant management, manufacturing, engineering, quality, production scheduling, materials and inventory management, and transportation cost reduction. We can quickly identify and implement changes that will have an immediate and sustainable impact. We can also provide interim/supplemental staffing to cover vacancies and temporary situations.
Operational dirty dozen signs of decline:
- Disorganized shop, dirty machines, poorly kept grounds, office clutter
- High scrap/rework
- Poor delivery performance
- Excessive inventory – especially work in-progress
- Excessive material movement
- Idle equipment/low equipment utilization
- No work instructions/no standard operating procedures
- Lack of visible metrics
- High employee turnover
- Absence of employee and management interaction
- High accident/incident rate
- Management defensiveness
Operational restructuring brought dramatic improvement in 180 days
Our operational restructuring team was able to help a client improve its operating income by 9 percent. They called us in because they were seeing a top line sales increase, but their EBIT (earnings before interest and taxes) declined to break even because of chaotic material control systems and plant floor practices.
We analyzed the situation, determined the root causes, and implemented corrective actions, such as rationalizing the company’s customer and product portfolio, redesigning its quoting model, and reducing the cost of poor quality (CPQ).
Besides increasing operating income, the changes helped the client achieve an annualized savings of $1.5 million. And their customer complaints dropped dramatically.
Another client called on our restructuring team to help the company return to profitability at much lower volumes.
In 60 days, we analyzed the situation, determined the root causes, and implemented corrective actions to address excessive scrap and material shrink. We reduced scrap and shrink by more than 50 percent, achieving a $570,000 annual savings.
Survival in today’s environment depends upon being operationally fit. Our operations restructuring team can help you be the fittest of the fit and lead you back to profitability.