Driving change with senior level leadership
Case Studies
Precision Manufacturing Company – Strategic Repositioning
The turnaround of an $80 million division of a $200 million manufacturer of automotive powertrain and defense components had stalled. Significant capital investments in new technology and capacity had led to even worse performance and greater losses. Customers were unhappy and new business awards were rare. A succession of internal managers had been unable to fix the deteriorating situation.
Our executive joined as VP and division General Manager and promptly conducted a strategic review of markets, process capabilities and customer needs. Major disconnects between the marketing, manufacturing and technology strategies were pinpointed. In seventy-five days, a new strategy and transformation plan was developed focusing on value added components for the aerospace/defense industries, reducing the amount of automotive, and eliminating sales activity in all other industrial markets. The Board of Directors accepted the strategy.
Our Executive successfully:
- Rebuilt customer relationships by resolving chronic quality/delivery issues. Late deliveries were reduced 85% and quality costs 19%, including resolving two serious potential warranty claims.
- The division staff was reorganized around the new business strategy, and three plants were consolidated into two.
- Process capability issues were identified and substantially resolved. Selective capital investments were made to expand capabilities to meet the targeted product requirements.
In eighteen months, $28 million of annualized new business was awarded in targeted markets.
Copyright 2008. The Verona Group, Inc. d/b/a C-Level Interim Executives. All Rights Reserved.
