We have a long history of improving the performance of virtually every type of manufacturing operation whether be a heavy industrial manufacturing, light assembly, or a food & beverage plant. Our manufacturing performance improvement approach is different from today’s conventional lean manufacturing approach. We believe processes and front-line training are means to the end, not the goal of a performance improvement program. We deploy a data-driven approach that is focused on rapid capture of quantifiable results that deliver EBITDA improvement and support and enable revenue growth.
Our manufacturing operations improvement assistance starts with developing a solid fact base of operational and cost performance; next we identify 3-5 operational levers that will allow our clients to maximize financial results in their investment hold period. We follow with targeted implementation assistance provided by Senior Operating Partners, with our assistance including creation of KPIs/measurement and feedback systems, fleshing out of targeted solutions, development of organizational capabilities to sustain the improvement program, and a robust implementation plan with front-line ownership and board oversight. Our manufacturing operations improvement capabilities cover every aspect of a manufacturing operation, including:
Captured $9MM in labor savings, eliminated $2MM in overhead, and avoided $6-7MM in capital expense from restructuring manufacturing operations by moving high-volume assembly to Mexico, consolidating low-volume assembly in a single U.S. plant, automating selected operations in the U.S., and outsourcing non-core operations
Captured $2+MM in savings from fixing operational basics, e.g., measurement & reporting, material and labor procedures, and production scheduling; implemented paper waste measurement system to identify major sources of loss and address root causes (e.g., setup waste, end-of-roll waste, material handling waste, in-process waste)
Identified 15-20% in near-term cost reduction opportunities from improved scheduling processes and shortened changeover duration/reduced changeover batch waste; longer-term, put in place system to track true costs and performance, enabling identification, prioritization, and implementation of further cost reduction opportunities
Identified and helped capture immediate cost savings opportunities in a recently acquired portfolio company that missed EBITDA target and violated bank covenants; effort included 3-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