Increasing the Bottom Line
Overview
Title: General Manager
Area of Specialization: Operations
Location: Ohio
Term: 24 Months
Background
A manufacturing plant in Ohio experiencing unplanned growth is struggling to adapt to the changes. This struggle has led to a negative impacts on the bottom line month-over-month. This organization is looking for someone to help control the growth, formalize systems, standardize process, remove personnel dependencies and train middle management.
Project Plan
- Evaluate Staff Strengths and Weaknesses
- Evaluate Financials
- Evaluate Vendors
- Implement Manufacturing Systems
- Expanded Implementation of ERP
- Full Inventory Cycle Count
- Cross Train Staff
- Realign Staff
- Add 3rd Shift
- Standardize Packaging Options
- Standardize Production Runs Based on Required Packaging
- Standardize Vendors
- Standardize Raw Materials
- Eliminate Formula Variances
- Full Cost Analysis of All Manufactured Items
- Evaluate Customers
- Outsource Items that are Inefficiently Produced
- Adjust Customer Pricing
- Implement Just-in-Time Raw Material and Packaging Initiatives
- Implement Short Shipment Windows to Eliminate Finished Goods Storage
- Implement 3PL Initiative for Customer Owned Inventory
- Standardize Forecasting Methodology
- Implement Supply Chain Management Solution
- Source a Full Time General Manager
Length of Engagement
The engagement was originally scheduled to last for 12 months. Due to the nature of the work and continual overturn in potential General Manager candidates the engagement lasted approximately 24 months.
Outcome
With an expanded engagement window we were able to ultimately accomplish more tasks. At the beginning of the project the manufacturing plant was losing approximately $750,000 per month. At the end of the engagement the plant was making profit. Being a family owned business the General Manager who took over the plant was an extended family member who was pivotal in completing all the tasks needed to turn the operation successful.