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)