Client: Large Scale Ceramics Manufacturer
Problem:
A large manufacturer of ceramic products with a national presence was facing bankruptcy if they could not improve productivity and turn substantial ongoing losses into profits.
Scope of Work:
The client asked Quantalyst to develop and report individual customer profitability for all active customer accounts. Since the results of this project had an impact on a pending transaction, the work had to be completed within three weeks.
What Quantalyst Did:
- Identified job throughput and time-in-plant issues as barriers to profitability.
- Implemented schedules to rapidly accelerate jobs-in-process to generate cash and improve customer service and satisfaction.
- Redesigned several back office processes while simultaneously upgrading usage of existing ERP.
- Implemented retail point of sale efficiencies to relieve significant back office burden.
- Restructured staffing - while achieving improved morale among the force.
- Hired replacement staffing to allow the successful turnover of responsibilities allowing a successful exit of the engagement.
- Quantalyst Consulting engagement director added to the board of directors.
Results:
- Client regained profitability, generating excess cash of over $300,000 in the first nine months of turnaround.
- New management hired to carry forward the organization after the completion of the turnaround and restructuring more than doubled sales volume in the succeeding three years.
- The firm recovered from a going concern opinion to an unqualified opinion in the succeeding audit following the restructuring.
