September 21 2017 - 7:42 am

CASE STUDIES

Business Turnaround : Underperforming Automotive Business
This refurbishment business was a non core activity of a major PLC , underperforming ( £4 M Loss) and was at risk of failing to be compliant with legislation phasing out solvent based spraying. This project identified that the workshops were inefficient and subject to “ feast and famine “ volumes with silo management preventing transfer of best practice. Analysis showed that legacy issues prevailed and no right sizing had taken place following a major contract loss. The project recommendation was to close one workshop, re design the main workshop layout and draw up a programme to convert the spray booths from solvent to water. The removal of over capacity and allocating available and surplus work between workshops , generated a more balanced throughput improved productivity and allowed the transfer of best practice to be achieved . The resultant impact was that the workshop bottom line improved by £0.7M. A separate project reduced overhead, supply chain and purchasing costs by a further £1.3M. The PLC was then able to divest the business to an equity backed MBI team.
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