Business Turnaround Solution

      From our experience with working many small, emerging manufacturing organizations, we observed a common pattern that contributes for negative profitability or declining profitability year over year. The pattern is that either the organization is not leveraging the given opportunity, i.e. not achieving 100 % delivery commitments from the given sales order or not effectively utilizing the resources like plant equipment, people, cash and material. The solutions call for a holistic approach on mindset, business practices and waste elimination efforts.

Given the above context, our solution methodology is as follows

Solutions Methodology

Depending upon the organizational constraints, we do re-engineer some or all the business and operational process to improve the organizational capability to achieve the delivery commitments, thereby increase the sales turnover and profitability.

Business Turnaround Solutions

Typical focus areas for business turnaround solutions

Flow Improvements

Redesign and Implementation of improved material flow which includes

  • Capacity Enhancement in critical processes
  • Cycle Time reduction
  • Ergonomic Workplace Design
  • Plant Layout design and improvement
  • Material handling design and implementation
  • Line balancing w.r.to customer’s fluctuating demand

Plant effectiveness improvement

One of the main reasons for not delivering on time and low profitability is due to low plant effectiveness. Our hands on experience in improving plant effectiveness includes the following

  • Measuring plant effectiveness like OEE (Overall Equipment Effectiveness) and identifying and eliminating or reducing wastes in people, equipment and management process
  • Utilization improvement initiatives
  • Setting time or changeover reduction
  • People efficiency improvement initiatives
  • Asset care practices
  • Daily management of people engagement

Quality Control and Assurance

Educate and Handhold the team to find preventive and detective solutions for chronic quality problems through structured problem solving methodologies.

Our hand holding approach to solve problems help to eliminate or reduce the following quality issues like

  • Product quality rejection
  • Customer’s complaints
  • In-house parts rejection
  • Rework

Financial Discipline

Reengineer your financial management process to streamline your

  • Working capital management
  • Payables / Receivables flow improvement
  • Identifying cost optimization opportunities from Profit or Loss Statement (P&L Analysis)
  • Restructure product costing and pricing aspects
  • Break even analysis and facilitation to improve your profitability

Basic management process

Reengineer and Implement basic management process like

  • Setting business and operational target (KPI’s)
  • Structured review forums
  • Improvement in communication process (MIS) among Team across the levels
  • Redesigning organizational structure

Material management process

Reengineer your supply chain and material management process which includes

  • Establishing inventory norms for different type of material classes
  • Strategize and reorganize your supply base
  • Material handling improvement
  • Performance management systems at supply base.

Production planning process

Revisiting and reengineering your production planning process which includes

  • Improving forecasting accuracy
  • Planning material and outsourced process
  • Constraint management in planning process
  • Inventory management
  • Improving communication process

Case study examples of Business Turnaround Solutions

Delivery schedule improvement in Casting & Machining organization

Through our engagement, the organization improved the sales turnover by 70% and profitability improved from -1.5x to +0.1x by focusing on the following areas

  • Basic management process improvements

  • OEE Improvements

  • Financial management

  • Streamlining production planning process

Profitability improvement in Forging & Machining organization

Through our engagement, the organization improved sales turnover by 15% and profitability improved from -2 xs to +1.8x only through the following approaches

  • Basic management process improvements

  • OEE Improvement

  • Financial management

  • Asset care practices

  • Resolving ‘Q’ Issues

Business Turnaround solution in Food processing organization

Through our engagement, the organization turnover improved from 33% and from negative to positive profitability within 6 months time frame

  • OEE Improvements in critical process

  • Financial management

  • Streamlining production process

  • Basic management process

Business Turnaround solution in Food processing organization

Through our engagement, the organization turnover improved from 33% and from negative to positive profitability within 6 months time frame

  • OEE Improvements in critical process

  • Financial management

  • Streamlining production process

  • Basic management process

Business turnaround solution in Paper manufacturing organization

The organization improved the profitability from negative to positive through the application of lean system thinking in the following areas

  • OEE improvement

  • Flow Improvement

  • Financial management

  • Basic management process

  • New product development

  • Pricing decisions

Delivery schedule and Top line growth in Precision component manufacturing organization

The organization engaged us to improve the top line and bottom line through the application of business turnaround solution like

  • OEE improvement

  • Basic management process

  • Financial management

  • People engagement practices

Given below the business turnaround performance of the organization within 12 months .

  • Delivery actualization improved from 60% to 80%

  • Contribution improvement by 24%

  • Sales growth by 54%

Success Stories