Our client, a world class automotive performance brand, was a family owned business, recognized as the brand leader for their market space. They had a short-term need for a General Manager, Manufacturing Operations in Multiple locations, for just 16 weeks.
The company was facing accelerating growth and a growing backlog, delivery to customers was suffering despite the efforts of the team. The total backlog was over $9,000,000. Unfortunately, the backlog was accelerating much faster than manufacturing capacity. The drop in customer fill rate led to canceled orders. In addition, the excessive overtime being used to catch up was causing people to burn out.
The firm made a number of unsuccessful attempts to find the right person to head up their manufacturing operations. They hired internally, hired consultants and worked with executives recruiting forms. However, once they decided to try the Interim route, they were sent three executives to choose from in less than a week. They were surprised at how close Cerius had come to matching the interims they sent to the client’s exact needs. In less than two weeks, they selected one of the interim executives and got him on board.
Once the Interim was on board the situational analysis was completed in week 1 and submitted with approval. They identified and refined 5 key initiatives with executive management. In week 2, the team developed project plans and reporting dash boards with KPI for each of the 5 initiatives. They communicated the changes and strategic focus to all key employees. The process of discovering and mitigating manufacturing bottlenecks began in week 3. The team continued to drill down into people and processes and uncovered bottlenecks.
Once the team began to implement changes, measurable results were soon to follow. In terms of results and numbers the following measurable results:
- 5 key processes were found to lack capacity and were improved.
- 1 key gating process increased capacity by 25%
- A key process based on a $3.6M automation investment ramped up and increased capacity > 70%
- A key process based on a $1.5M automation investment required programming and staffing – successfully completed and ramped up.
- A fourth critical process area increased capacity > 25% w/ no change in headcount.
- A fifth critical process area is undergoing reorganization to increase capacity.
- Total Output vs. Backlog
- Total output of finished goods to improve customer fill rate increased by 36%
- Backlog was reduced by 49% for the period
- Cultural Changes
- Speed of play and execution noticeably faster
- The drive to have all team members focus on the FEW company critical initiatives continues to be a success.
Feedback (Quotes) from inside team
- The consultant took responsibility and leadership for the key initiatives.
- Drove and increased weekly output
- Instilled a culture of speed and execution.
- Increased customer fill rate and reduced the negative impact of the backlog.
- The consultant’s work was integral to the completion of key goals.