Operational Turnaround 1

 

Situation:

A $55 million electric fractional motor division of a $5 billion global automation company was on the verge of losing 30% of their customers due to manufacturing inefficiencies which resulted in long lead-times. Corporate had already sent drawings to a 3rd party manufacturer to move production and close the facility.

Actions:

  • Replaced Operations Manager with AlphaPoint Interim Operations Manager
  • Optimized patterns of manufacturing utilizing Just-In-Time (JIT) principles
  • Worked to improve component delivery dates with vendors. In some cases, sourced product from several newly qualified suppliers

Results:

  • Captured $16.5 million in sales and $6.1 million in operating profit which were in jeopardy
  • Reduced customer delinquency from $750,000 to $53,000 in 18 days
  • Reduced customer lead-time from 16 weeks to 4 weeks in 90 days
  • Improved customer on-time delivery from 68% to 92% in 3 months
  • Reduced operating cost by $1.2 million dollars in 6 months
 
 

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