Case Studies

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.