Management and implementation of the restructuring
Strengthening of the existing management team by supplying more managers and specialists (incl. plant management, assembly management, shop floor management, logistics, SAP)
Circumstances and environment:
The medium-sized company, family-run for many decades, is based on a very heavily pronounced technological product expertise. Robust products led to a very large market share of well-known customers being established. The products are, generally speaking, safety-related in their use. A unique selling point lies in the fact that the value-added chain is characterised by a very large amount of in-house manufacturing.
In recent years, the company has increasingly come under pressure due to rapid growth in the form of turnover and product variety, combined with fast implementation of a globalisation strategy. Production sites were established in various regions and countries, a “local for local” strategy was introduced under high pressure. The fixed-cost structure significantly increased during this period. Furthermore, the international production network necessitated an increasing and urgent need for organisational structures and processes.
In close cooperation with a well-known audit firm, we made the key drivers of complexity and cost transparent, translated this into a future strategy tailored to the customer and worked out a comprehensive package of measures. Together with the management and executives at the various sites, we gradually implemented and continuously refined the package of measures.
The joint approach enabled us to significantly and, above all, sustainably improve the cost and cash-flow position.
Summary of a few focus areas and courses of action:
- Member of the steering group (shareholders, customers and other participants) in the role of the “CRO”.
- Support in the M&A process.
- Organisational development and further development of management and leadership processes to enhance results at the sites (quality, delivery, costs). Thereby, in particular, empowerment of the organisation to find a sustainable solution for complex tasks. Enhancing effectiveness in cooperation in the international production network.
- Leading the programme of measures. Drafting, further development and implementation of a package of measures to enhance the result.
- Introduction of a logistics organisation throughout the group.
- Development of logistical processes for an efficient cooperation across all plants.
- Logistical control of production orders and safeguarding of supplies to customers within the international production network.
- Introduction of comprehensive support and provision of training courses on using the SAP system.
- Reduction of complexity in particular by redesigning logistical supply chains and reduction of long through-put times within the international value-added chains.
- Significant reduction of special cargo and quality costs.
- Planning and implementation of relocations of production. As a result, significant complexity reductions due to the unbundling and consolidation of value-added stages.
- Extensive increase in the availability of machinery and equipment (OEE).
- Introduction of shop floor management into the production plants and integration of the worker level. This includes significant further development of the continuous improvement process.