Network/ Footprint Optimization
Consolidating 2 North American Manufacturing Facilities at Global Industrial Products Manufacturer
Created business case and closure plan for consolidation of 2 facilities (located within 6 hours drive) as part of worldwide sourcing strategy. Total COGS, overhead and SG&A cost-savings from the consolidation are estimated at $6MM, while one-time costs are estimated at $8MM. In addition, over 50% of key personnel decided to stay on and move to the other facility.
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Assessing Product Design and Network Simplification Opportunities at Global Environmental Machinery Manufacturer
Analyzed product portfolio and design platforms, manufacturing and engineering facilities, and cost structure to establish cost reduction opportunities at a machinery manufacturer with operations distributed over 13 facilities in 8 countries. Due diligence identified $23-39MM (12-21% of total COGS) in cost savings from standardizing/modularizing product line and executing a low-cost manufacturing strategy, simplifying/consolidating the manufacturing and engineering network, and reducing material, labor, and freight costs.
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Determining Plant Closures and New Asset Placement at Large Consumer Goods Packaging Manufacturer
Formulated plant closure strategy and determined placement for the new printing assets by analyzing capacity, loading, customer logistics, and risks for each affected plant. Developed cost saving and one time cost scenarios. Developed business cases for two plant closures identifying $6.3MM in annual savings. Both closures were announced within weeks of the board's decision after the business cases were presented.
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Assessing Manufacturing Capabilities and Scalability to Support Aggressive Growth Projections at Startup Green Building Materials Company
Analyzed operations and cost structure of this startup manufacturer projected to grow to over $80MM in sales in 5 years. Reviewed manufacturing equipment and operations, built a bottom-up cost model for current and future costs, and established requirements for scaling up the operations. The operational due diligence revealed necessary improvements to meet the very aggressive growth forecasts, as well as opportunities for cost reduction. PE client deferred investment.
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Properly Valuing Diverse Manufacturing Operations at Fabricated Metal Products Holding Company
Analyzed operations and cost structure of 5 independent companies engaged in forging, casting, and stamping operations. Deciphered cost structure, reviewed manufacturing operations, and analyzed material spend. Identified $7-15MM of labor, overhead, and material cost reduction opportunities in the largest of the companies, which was engaged in steel casting. Identified another $6-9MM in scheduling, labor, efficiency, and consolidation opportunities for the remaining companies. After delayed acquisition, now helping to capture opportunities.
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Operational Basics, Waste Reduction, and Productivity Improvements to Turn Around Declining Performance at Stationary Products Manufacturer
Identified $2+MM in opportunity from focusing on operational basics, e.g., measurement & reporting, material and labor procedures, and production scheduling. Implemented a paper waste measurement system to identify major sources of loss and then addressed root cause issues (e.g., setup waste, end-of-roll waste, material handling waste, and in-process waste). Within 6 months, material waste more than halved (from the original 40%+ levels) and labor productivity went up 15%.
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