Operational inefficiencies

Operational Inefficiencies and Cerius Business Consulting

Urgent cost cutting required

Implementation

  • SOP for quality improvement
  • Upgraded reporting and accountability
  • Reorganized engineering into multi-shifts

Business Consulting Results

  • Reduced returns by 75%
  • Improved engineering lead time by 60%
  • Reduced employee turnover by 75%

Accounting and inventory systems not linked

Implementation

  • Connected inventory and accounting system through new process created

Disorganized department

Implementation

  • Realigned teams
  • Reduced costs to overall budget
  • Projects adjusted and moving forward with clearer direction

Business Consulting Results

  • Reduced IT budget by $7 million
  • Put in motion plans for additional $1.5-2 million of reductions

Obsolete Systems

Implementation

  • Restoration, recovery and remedial actions created and executed for system outage
  • Established back-up systems
  • Set up performance testing program

Business Consulting Results

  • Full recovery within 6 months of system outage

Large project 6 months overdue

Implementation

  • Completed large project within one month of start
  • Hired Director of IT Operations
  • department not functioning in part due to key role missing

Business Consulting Results

  • Brought strategic product to market within one month delivering 3% increase in revenue

Quality issues

Implementation

  • Implemented SOP for quality improvement
  • Set specific goals and objectives for current COO with accountability system
  • Upgraded reporting system for engineering and programing
  • Reorganized engineering into multi-shifts
  • Managed and improved engineering department

Business Consulting Results

  • Improved lead time by 60%
  • Customer returns reduced by 75%
  • Involuntary employee turnover in plant reduced by 75%

Needed to reduce costs such as health care and personnel

Implementation

  • Reviewed company benefits and researched alternative health insurance options
  • Worked with executive staff to improve leadership skills to meet company’s goals

Business Consulting Results

  • Reduced company- wide health insurance by $250,000
  • Reduced 10% of work force due to redundancies in jobs

Wanted process and procedures in place for employees

Implementation

  • HR process and procedures in place to support accountability

CEO saw need to focus on process improvements and staff effectiveness, management strength

Implementation

  • Develop a set of highly transparent, widely accessible performance metrics

Business Consulting Results

  • Bottom line effect of $600k+
  • Produced 20% reduction of inventory on-hand
  • Reduced customer backorders by 50%
  • Reduced warehouse space requirements by 20%
  • Reduced customer order time from six to four days
  • Renegotiated supplier contracts reducing costs

High cost of goods and inefficient SKU mix

Implementation

  • Implemented one page strategic plan down from 27 pages
  • Focused on 60 and 90 day action plans rather than one year
  • Established dashboards to drive and manage business for each department
  • Performed full line and SKU analysis
  • Optimized line production and work schedules

Business Consulting Results

  • 36% drop in cost of goods
  • 300 SKUs identified to warrant price increase
  • Dropped 100 slow selling SKUs
  • Fill rate increased by 20%
  • Reduced variability on production lines
  • Decreased scrap by 4%

Quality of customer service declining; CEO had too many direct reports

Business Consulting Results

  • Customer service rating increased from 2.5 to 4.5 out of 5 = average to extraordinary
  • CEO enjoyed 3 vacations during assignment and now takes every Friday off to spend with family

Company losing money; ERP system was outdated

Implementation

  • Implemented LEAN manufacturing
  • Analyzed and addressed scrap, overtime, and returns
  • Reorganized warehouses
  • Analyzed and implemented state of the art scanning system
  • Right sized organization to current business needs and conditions

Business Consulting Results

  • 78% reduction in Overtime
  • 75% reduction in returns
  • 50% scrap reduction – Found additional $1M in sold inventory
  • 15% reduction in storage costs
  • 50% reduction in SKU’s
  • 10% reduction in workforce

 

 

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