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Labor Productivity

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Ethnic Foodservice Products Manufacturer
Rapidly Capturing Manufacturing And Logistics Cost Reduction Opportunities At Ethnic Foodservice Products Manufacturer

Captured $1.2MM in operations run-rate savings in 12 weeks at an ethnic foodservice and retail private label products manufacturer by implementing shop floor management best practices. Gotham worked on the shop floor to: observe operations; identify potential improvement opportunities; provide immediate guidance to client personnel; and troubleshoot and pilot solutions. We improved line through from ~225 cases/shift to ~375 cases/shift, reduced fill weight by 3-7% to minimize overfill, reduce floor scrap by 50%; and eliminated expired rework scrap. To ensure sustainability and further improvements, we: trained client personnel, put in place process changes, tools, KPIs and reporting system; and identified/planned next set of improvement opportunities. Gotham also launched logistics savings capture by developing direct ship pilot and facilitating conversation between company sales teams and foodservice distributors.

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Climate Control Products Manufacturer
Establishing Operation End-vision for a Fast-growing, Entrepreneurial Climate Control Product Manufacturer

Conducted a 3-week operations diagnostic to establish an end-vision for optimizing the clients’s manufacturing, supply chain, and engineering operations. Gotham developed a solid fact base of the client’s operations, including demand patterns, inventory, labor efficiency, product complexity, and cost structure. Working with management, Gotham created an end-vision to transform operations and generate both real bottom line benefits – 600bp EBITDA improvement, 20-30% reduction in inventory, and 30% reduction in the plant footprint – and capability enhancements (faster speed to market, improved quality, etc.) that will allow the client to capture market opportunities and drive future growth. The company’s board wholeheartedly backed this end-vision and asked Gotham to help accelerate capture of these opportunities.

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Branded Household Goods Manufacturer
Focusing and Accelerating Labor and Freight Cost Reductions at Branded Consumer Goods Company

Identified and help capture immediate cost savings opportunities in a recently acquired portfolio company that fell short on EBITDA target and violated bank covenants. Effort included 3-4 week development of $1-2MM cost reduction plan and 6-week assistance in capturing $900K labor and outbound freight opportunities, accounting for 15% increase in EBITDA.

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Automotive Components Manufacturer
Finding and Valuing Cost Reduction Opportunities at Global Tier 2 Automotive Components Supplier

Conducted opportunity assessment at Tier 2 Automotive Parts supplier with manufacturing locations in 4 countries. Identified $6-9MM in short-term and $27-37MM in longer-term cost reduction opportunities. Near-term opportunities included improving efficiency of US operations and re-sourcing materials and components from lower cost locations. Longer-term opportunities involved closing a European facility, migrating labor-intensive products from the US to Mexico facility, and building up a Chinese JV to supply all Asia product needs. Identified opportunities far exceeded management plan.

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Jewelry Manufacturer And Printer
Identifying and Quantifying Potential Network and Standalone Improvements at Specialty Jewelry Manufacturer and Printer

Conducted diagnostic to identify areas of opportunity and potential value of operational initiatives. Identified $6-8MM opportunities in jewelry manufacturing and $4-6MM in book printing via application of lean manufacturing, automation, improved customer service, and network optimization. Established a 100-day plan to jump start the opportunity capture. Post-acquisition, using 100-day plan, management able to migrate manufacturing to lower cost countries, outsource product finishing, and close an underperforming facility, leading to the capture of the outlined savings within 12 months.

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Beverage Co-Packer
Throughput and Cost Improvements to Become a Competitive Full-line Beverage Co-packer

2 week diagnostic that benchmarked conversion costs for the company and identified 15-20% in cost reduction opportunities. The effort indicated that with improved scheduling processes and more efficient use of labor, the company could save at least $1.5MM in the short-term. Recommendations also included putting in place a system to track true costs and performance to enable longer-term improvements.

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Industry Expertise

 
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Consumer
 
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Food & Beverage
 
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Healthcare
 
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Industrials
 
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Infrastructure
 
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