Fiberglass & Insulated Booms Manufacturer Increases EBITDA, and Net Profits
About the opportunity
• Internal defects costs as a percent of sales averaged 10%
• Leaders functioned in a highly reactive manner
• There were no goals, metrics, nor documented procedures
• No product quality criteria to identify areas to improve
• Customer complaints were also showing an upward trend
• The business lacked a defined strategic plan with long- and short-term goals
• Phase 1 – Operational Stability: We focused on eliminating inefficiencies in the operation to facilitate better product flow.
• Phase 2 – Leadership Development: We began providing middle managers and first-line supervision leadership and operations management training.
• Phase 3 – Strategy Deployment: In the last phase we focused on developing a 3–5-year plan for creating profitable growth for the business.
• Improved on-time delivery by 58% by streamlining and improving product flow.
• Reduced customer complaints by 53% by driving root cause problem resolution.
• Reduced internal scrap by 69% by standardizing processes and reducing mistakes.