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Case Study 1
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location >> home : our services : case study one
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CASE STUDY: Manufacturer in commodity market needing to change cost structure and product mix
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Company Data:
- $275 million sales annually - 300 employees - commodity product lines Key Business Issues: - equipment limiting product diversification options - limited marketplace with narrow margins - cost structure unsustainable Results: $72 million of P&L impact over 5 years (the site lost an estimated $30 million and one year later earned $8 million). Completed 750 projects in 5 years and more than 80% of all employees participated in the process. 97% of all projects delivered financial savings and 12% of all projects exceeded original first year financial goals. Our Approach: Aggressive cost optimization with willing but underutilized workforce. Install ProfitLink STRIVE™ Team Improvement System. Install Hidden Cost Diagnostics™ to increase magnitude of projects in all areas. Client Perspective: From John Donahue, Mill Director, Specialty Products North American manufacturing operation "As a mill director I have reviewed dozens of improvement processes over the years and participated in several. This one is truly different... it is comprehensive and sustainable. First, it helped us to install a unique discovery process (Hidden Cost Diagnostics™) to expand the potential improvement ideas & deepen our financial understanding of the business. We started with a limited management view of our potential and we have transformed into an organization where everyone now understands the key levers of the business. A backlog of high quality ideas are now generated at all levels of the organization. Second, the ease of the 7 step process and the weekly review have helped to create a discipline to speed up project implementation & the financial impact by at least 5x. In addition the cultural implications have been dramatic. The rhythm of start up, the step 5 meeting and the closeout process has improved communication, recognition & most importantly management and employee alignment. This system has become integrated into the day to day work we do. We have come a long way to become a hugely profitable business with the help of Profitlink." |
  
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