Client asked Elliott Davis: Can you help us clean up operations to make us attractive to buyers?
Our customer is an injection molding manufacturer with exposure to multiple consumer goods markets. The owner recently decided to sell the company to a strategic buyer due to operational challenges and wanted to boost the company’s valuation.
The manufacturer had been struggling to meet demand despite 24/7 operation and numerous efforts to improve throughput and quality. The business’s cost structure was also burdened with excessive temporary labor costs, poor sales strategy and processes, and poor cash management.
Elliott Davis broke the project into five work streams, leveraging DMAIC principles
(1) Data clarity and metric optimization
- Developed and implemented KPI’s for Sales, Quality, Customer Service, Productivity, Cost, People and Safety
(2) Sales Strategy Transformation
- Built and implemented CRM and supporting processes to focus efforts on selling to ideal customers and profitable business
(3) Maximizing Throughput
- Simplified shop floor approach to enhance performance on the most critical products and processes
- Reduced cycle times and reconfigured work
(4) Scrap Reductions
- Conducted root cause analysis on key scrap drivers and implemented improvements to mitigate issues
(5) Human Capital Optimization
- Analyzed gaps in workforce performance and implemented solutions to improve attendance, turnover, and workforce morale
- Sales increased by 20%
- Throughput increased by 15%
- $525K annualized savings from scrap
- Reduced labor spend by 21% and turnover by 50%
- Increased valuation by 25% and resulted in a profitable sale
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