Interim Manager Turnaround

M&A Realization
Written By INOVAT

$843K in April to $2,575K in September.

Case Studies

Business Issue

Client was running outside of its business system as their local management had not bought into the corporate process. Its business practices were unconventional. EBITDA was in the red due to low sales, swelled headcount, poor buying practices, and non-existent shop control.

Approach Taken

A Flow Consulting Interim Plant Manager was put in place and the Plant Manager immediately implemented the following:

  • Began training in correct use of the corporate ERP while implementing lean manufacturing discipline.

  • Team focus was on achieving metrics: Revenue, EBITDA, On-Time Delivery, and Job-Cost Matching.

  • Facilitated Value Stream Mapping sessions focused on value-added tasks.

  • Analyzed every shop-order closure for performance improvement opportunities.

Results

On-Time Delivery: 35% in February improved to 97% in September.

  • EBITDA: -55% (-$463K) in April to +15% (+$350K) in September.

  • Revenue Opportunities: $843K in April to $2,575K in September.

  • Lead Time: Reduced lead-time from quoted 17-20 weeks to 8 weeks on a $1.2M job shipped in September.

  • Inventory accuracy: Experienced (-$200K) inventory shrinkage in March opposed to a $25K pick-up in September with improved accountability.

  • Cost Control: Bar code scanning replaced paper labor reporting. (Revenue and costs matched in the month of shipment.)

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