Restructuring of a powder metal production business will result in an annual profit improvement of $ 13 million
Manager:
Mr.W. B.
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Customer:
Confidential
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Role:
Restructuring Lead; Mentor of the Plant Manager
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Location:
USA
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Turnover:
business unit annual sales of $ 550M (2008)
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Time frame:
6 months
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No. of employees:
Business unit 2000 employees globally in 20 locations (2008)
About the Customer
The company is a major global Tier1 in the automotive industry headquartered in the United States. The company has about $ 5B in annual sales and is organized into business units. Worldwide employment is about 16000 employees in over 60 locations worldwide. The company is # 1 (world market leader) or # 2 in most of its product segments. The business unit is in discussion # 1 in their product segments. ,
Testimonial from Сustomer
The workforce is very motivated to support the changes and the moral and product quality.
The company top management was extremely pleased with the financial results and even more with the timing.
Situation (Challenge)
One hundred and fifty employees over the long term, but the product was important for the system and could not be outsourced due to technical complexity. Mr. WB (BU VP) took charge of the project and acted as a mentor for the plant manager.
Solution (Achievement)
After a thorough analysis of the business situation, product portfolio, production data and employment contracts. Improvements were realized in a very short time in all aspects of the business including re-design of components, product portfolio streamlining, major changes in production processes and removal of non-profitable production equipment. Radical changes have been made in production processes including a complete change of production sequences. The changes in the obsolescence of approximately 18 machines. Most of the obsolete equipment was sold in the market.
The activity was completed in six months and cost savings were demonstrated immediately.