Machinery/ Capital Goods
Customer & Market Due Diligence of Filtration Equipment Manufacturer: Assessing Metal Pricing Risks and Opportunities for Adjacent Market Expansion
Conducted 3-week customer & market due diligence to: (1) assess the impact of potential metal price reduction on target’s revenue by developing a robust understanding of metals pricing, mining economics, and historical trends; and (2) establish growth opportunities in adjacent end-markets (chemicals and industrial wastewater). For each end-market, we: established production/treatment processes, filtration technologies, and market dynamics; built market sizing/growth models; and conducted 50+ customer calls to establish/validate filtration requirements. We also built a comprehensive view of different filtration technologies and their usage, as well as competitive dynamics in the filtration equipment industry. Based on our findings, PE client confidently moved forward with the transaction and closed the deal.
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Operational Due Diligence at Global Environmental Machinery Manufacturer: Assessing Product Design and Network Simplification Opportunities
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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Operations Improvements at International Custom Machine tools Designer and Manufacturer: Quick-win Engineering and Material Cost Reductions
Conducted 4-week diagnostic to understand drivers of ongoing margin erosion (~10% point gap between quoted margin vs. realized margin) that identified $1.7-2.7MM in quick-win cost savings opportunities in 3 key areas: robust, cross-functional quoting and engineering processes with formal involvement of engineering in the quoting process and proactive management of hours/scope in the engineering process; material spend reduction by implementing cost-focused (vs. “get the parts in”) purchasing process/tools, renegotiating/ establishing contracts with key vendors, and standardizing parts to leverage volume; and selective migration of engineering to India, starting with detailed engineering and phasing in higher skill activities. Execution assistance included: creating vendor negotiation strategy and vendor packages for top vendors (6-20% savings already realized); crafting quoting and engineering process end-vision; and developing a detailed capture plan with timeline for all targeted savings.
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Manufacturing Operations Improvements at Leading Manufacturer of Industrial and Commercial Machines: Quality Management Program to Ensure High Returns from Quality Assurance Spending
Created a new quality management program to raise the overally effectiveness of quality spending, with key elements including: alignment of quality KPIs with customer needs and optimal process decision points; proactive management of quality assurance up and down the supply chain; accurate information on the true costs of quality functions to facilitate decision making. The program comprised vendor certification, product quality standards, preventative maintenance, inspection and testing processes, timely problem reporting and resolution, warranty processing, and quality performance and tracking. Six- month checkup of client-led program implementation found significant reduction in the cost of quality.
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Outsourcing Non-core Operations at Specialty Electrical Equipment Manufacturer: New Manufacturing Strategy at ThermaGoods
Identified potential for outsourcing non-core activities, created phased plan, and helped with phase 1 (PC board assembly). Prepared client teams to handle subsequent outsourcing targets. Annual conversion and material cost savings ranging from 6% (transformers) to 20% (stuffed PCBs), with $4.5MM in near-term capital avoidance.
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Quadrupling Revenue at Leading Power Electronics Company: An Effective, Actionable Growth Strategy for PowerTech
Developed a pragmatic growth strategy to grow an unprofitable $25MM revenue business to a $100MM, 20% EBITDA business within 4 years. Effort included first developing the target product strategy based on market segmentation and analysis, competitive assessment, and product portfolio and capability analysis, and then creating product development, sourcing, branding, marketing, and channel strategies. Initial annual savings target of $2.7MM accomplished within a year before top-line growth kicked in.
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