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Operational Restructuring

Operational restructuring can be your key to survival

Every dollar counts especially in these economic times. If previous improvements and other efforts have not been enough, it may be time to take a serious look at operational restructuring. It could be the lifesaver your organization needs.

Whether restructuring your operations to reduce cost, to prevent bankruptcy, or as part of bankruptcy, you can call on our experienced operations consulting and restructuring team to drive the changes necessary to reduce cost and have a viable operation. Changes in your operations can quickly and dramatically impact cash flow and your bottom line. 

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

 


Seasoned 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 hands-on experience of our seasoned operations restructuring experts who can quickly provide you with a comprehensive operations analysis and execute business process management systems that get you back on track to profitability.

They can help with plant management, manufacturing, engineering, quality, production scheduling, materials and inventory management, and transportation cost reduction. Our operations restructuring consultants can quickly identify and implement changes that will have an immediate and sustainable impact. They can also provide interim/supplemental staffing to cover vacancies and temporary situations. 

Restructuring brought dramatic improvement

In 180 days, our operational restructuring team was able to help a client improve its operating income by 9 percent. The organization 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.

Our restructuring team performed an operations analysis of 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 operations consulting and restructuring team to help them return to profitability at much lower volumes. In 60 days, the team analyzed the situation, determined the root causes, and implemented business process management systems to address excessive scrap and material shrinkage. The restructuring team reduced scrap and shrink by more than 50 percent, achieving $570,000 in annual savings.

Survival in today’s environment depends upon being operationally fit. Our operational restructuring team can help you be the fittest of the fit and lead you back to profitability.