Company Size & Timeframe
- $150+ million in revenues
- 5 days/week for 7 months
Results
- Increased production by 35%
- Decreased labor costs by 50%
- Increased contribution margin by 10%
Company Profile & Position
- Large
- Interim CEO/COO
Situation
- Geographically challenged
- Losing money with no go-forward plan
- Past leadership lacked well-rounded background to consider all areas of the company
- Large capital projects underway to address perceived plant capacity issues
Implementation
- Implemented KPIs to increase productivity
- KPI tracking provided visibility to major downtime issues
- Worked with engineering to develop plan to address areas of the plant causing downtime and lost productivity
- Created a plan to address reliability issues rather than capacity issues
- Revised costing to reflect true cost by customer and SKU
- Adopted a clear organizational model to minimize conflicts and provide clear lines of communication
- Adjusted sales plan to improve margins based on customer segment and product mix
Cerius Insights
What gets managed gets measured; what gets measured improves.