Results

• Increased production by 35%
• Decreased labor costs by 50%
• Increased contribution margin by 10%

Company Profile & Position

• Large
• Interim CEO/COO

Situation

• Geographically challenged
• Losing money with no go-forward plan
• Past leadership lacked well-rounded background to consider all areas of the company
• Large capital projects underway to address perceived plant capacity issues

Implementation

• Implemented KPIs to increase productivity
• KPI tracking provided visibility to major downtime issues
• Worked with engineering to develop plan to address areas of the plant causing downtime and lost productivity
• Created a plan to address reliability issues rather than capacity issues
• Revised costing to reflect true cost by customer and SKU
• Adopted a clear organizational model to minimize conflicts and provide clear lines of communication
• Adjusted sales plan to improve margins based on customer segment and product mix

Cerius Insights