Operations

COO - Operations

Operations

20%
increase in fill rates
36%
reduced COGS
Reduced
100 non-productive SKUs
4%
reduction in scrap
[Interim] was a key part in bringing the group together that was left after the transition and coming up with the game plan going forward.
Company Profile
Manufacturer of automotive aftermarket parts
Mid-market, 50 employees, family owned
Position/Timeframe
Chief Operating Officer
2-3 days/week for 6 months
Situation
Increasing cost of goods
Needed to restructure management team
Need for improvement in SKU mix, pricing, fill rates and line productivity
Company lost strive for excellence
Implementation
Implemented one page strategic plan down from 27 pages
Established dashboards to drive and manage business for each department
Focused on 60 and 90 day attainable action plans rather than one year
Created business champions giving full authority to run their departments in best interest of the company
Performed full line and SKU analysis
Optimized line production & work schedules
Established team decision making

Results

  • Provided savings equivalent to 3x increase in sales
  • 50% drop in costs of goods
  • 300 SKUs identified for price increase
  • Dropped 100 slow selling SKUs
  • Fill rate increased by 20%
  • Reduced variability on production lines
  • Decreased scrap by 4%
  • Decreased delivery time
  • 5th bullet point: Decreased delivery time