Implementation of an operational turnaround plan

Sector of activity: Industry
Size (sales in €m): 200

Context

  • Following a decision to move the industrial premises, this company’s profitability fell sharply: EBIT of €(12)m of which €(6)m on the industrial site.
  • Moreover, many operational problems had arisen: deterioration in service rates, reduced productivity, higher break-even point for the plant, etc.
  • Firstly, shareholders wanted clarification of the causes of this under-performance as well as an action plan to return to stability
  • Secondly, management wished to be assisted in implementing this plan.

Our mission

Diagnosis:

  • Industrial Performance Analysis: planning of production, procurements, lean manufacturing.
  • Plan to reduce fixed costs.
  • Creation of a “Trade-Production” contract.

Implementation:

  • Support with implementation of 5 industrial worksites.
  • Implementation of reporting enabling tracking of results.

Results

  • 20% improvement in plant productivity.
  • 20% rise in the service rate (from 65% to 85%).
  • €1m reduction in the plant’s fixed costs (12%).
  • Impact on EBIT (plant): return to stability in 3 months.

Key success factors

  • Control of industrial problems
  • Intervention on all strata of the company (from shareholders through to the plant operators)
  • Selection of worksite managers (driving forces)