Turnaround Consulting: Fabricated Metal Product Manufacturer
Client
Privately owned Fabricated Metal Product Manufacturer experiencing year after year losses.
Situation
- Owner was struggling to make payroll and feared he would be forced to shut down and liquidate the company the following week.
- Management needed help determining whether or not the company could continue as a going concern and, if so, how to implement an improvement plan.
Solution
- BlueWater was engaged and spent the first 24 hours analyzing the company’s recent performance, identifying strengths and weaknesses.
- Led a weekend planning session with management. Because customer relationships were still a strength, we concluded the company needed to radically restructure its operations to substantially reduce costs.
- Finalized the plan to implement the restructuring during the following week.
- Built operating and cash flow models to measure progress and results.
- As profitability returned, provided management with a long-range performance improvement plan to ensure sustainability and growth of new profitable experience.
Result
- Reduced headcount by 35 employees.
- Went from operating 24-7 (with related overtime premiums) to two 10-hour shifts, five days a week.
- Improved on-time delivery and reduced scrap and rework.
- Profitability restored and continuous improvement plan in place.
