Uniprop engaged us to turnaround one of their portfolio companies located in Chicago, Il suburb. This company produced high precision shafts and spool valves primarily for a major construction and mining equipment company. Uniprop had purchased this family owned company with a managing partner. Uniprop and the managing partner separated just before we were retained.
The company had just survived a significant economic downturn where they choose to lay off a number of key and long-term employees in order to reduce overhead and cost. This resulted in them being unprepared for an upturn in sales as the economy recovered. When we arrived, the company was hopelessly behind with on time delivery under 30%. They had no strategy, plan to recover, or idea how to meet the upcoming demand. They were significantly understaffed, unengaged, and feeling like the future was hopeless. Late deliveries were threatening to shut down their customers and customers had brought in supplier development resources to assist in getting deliveries back on track.
We were able to come in and complete an assessment of the current situation, talking to the leaders, employees, and customers. Based on gathered information we partnered in creating a playbook to get back on time with deliveries. This playbook was reviewed and accepted by the customer. Playbook included:
• Working with customers to confirm requirements
• Developing a scheduling plan to be able to track orders and parts
• Changes in material ordering process
• Strategic outsourcing of some parts
• Work with suppliers to reduce lead times and establish rush order agreements
• Work on production process improvements
• Adequately staff to be able to meet current and future demand
• Celebrate achievement of milestones along the way
Steady progress was made in getting deliveries back on track, and after four months the backlog had been largely eliminated and percent on time had climbed to above 90%. However, in the first three months, production demand doubled and in the next three months it doubled again. The company struggled to keep up and percent on time dropped back to 50%. Solution ended up being further outsourcing of parts, further process improvements, and additional staff hiring. It also become clear that some personnel changes were necessary, and a purchasing and operations manager were hired.
After ten months things were stabilized:• Customer on time deliveries were holding above 90%
• Customer demand had increased 300% and had stabilized
• Production Output had increased over 300%
• Achieved full staffing
• Hired long term leadership
• Maintained Quality
• Improved employee engagement
• Celebrated successes on a regular basis. Everyone in the company understood the importance of Quality and On Time Delivery and became focused on what they needed to do to achieve these goals. Communication improved, housekeeping improved, flow of parts through the process improved, and we celebrated the achievement of goals.