Manufacturing
Manufacturing – President
Results
Company Size & Timeframe
- $17 million in revenue
- 48 employees
- 4-5 days/week, 3 months
-
Results
- Achieved savings equivalent to 4x increase in sales
- 50% scrap reduction
- 78% reduction in overtime
- 75% reduction in returns
- Found additional $1 million in sold inventory
- 15% reduction in storage costs
- 50% reduction in SKUs
- 10% reduction in workforce
-
Company Profile & Position
- Family-owned
- CEO/President
-
Situation
- Owner/Operator (father) passed away suddenly
- Succession planning had not been done – no clear leadership
- Company was losing money
- No strategic plan or reporting for decision-making
- Lack of interdepartmental sharing
- Inaccurate financials
- Outdated ERP system
-
Implementation
- Realigned culture to “Expect Excellence”
- Implemented LEAN manufacturing
- Initiated regular meetings and reporting
- Formulated initial dashboard to drive key core metrics
- Analyzed and addressed scrap, overtime and returns
- Aligned customer terms with industry standards to improve profitability
- Reorganized warehouses
- Analyzed and implemented state-of-the-art scanning system
- Right-sized organization to current business needs and conditions
Cerius Insights
“[The interim] was the right choice so we could make the tough change in leadership. He helped us see the harsh realities of the state of the company and he pointed us to the road of recovery until we found our permanent solution.”