Case Studies
Business Transformation


Background
The business manufactured precision investment castings in exotic alloys for the aerospace industry. Unfortunately, the business had major customer service issues due to the failed implementation of a significant new package of business. This was creating severe reputational risk for the Group and a loss of profitability for the site. Manufacturing was in chaos driven by high levels of scrap and a lack of organisation with expediting rather than planning being the order of the day.
The Solution
Improvement Plans
A series of improvement plans were generated covering the main causes of distress. These included; manufacturing strategy, capacity planning and scheduling, training, supervisory effectiveness, management structure, employee communications, reorganising engineering and quality, product costing and pricing.
- EBITDA improved from an actual loss of £1.5m to a forecast profit of £1.5m.
- A key customer balanced score card improved from 34% to 89%.
Cost Reduction Programme
Reduced the workforce by 10% and simultaneously increased output by 30% through delivering improvement plans whilst reducing scrap by 66% which contributed to “good” output through reorganisation of Engineering and closer liaison with the customer.
Cultural Changes.
A combination of all the above plans resulted in the initiation of a culture change that was sustained by the new management team on hand over. A more confident and results orientated team continue to drive the business forward.
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