A cast aluminum supplier to the automotive and heavy truck industry had reduced finished goods inventory drastically in a move to generate cash.
This created a downward spiral where tool changeovers were needed more often, before economic order quantities were reached.
This drove more downtime, which drove late deliveries, premium freight, and even further reduced inventory, which continued the cycle of decline.
The plant was on the verge of collapse and customer takeover.
- Accomodation agreements were negotiated with customers and the bank
- Worked with customers with minor pieces of business to move their work to other sources.
- Worked diligently to reduce changeover and setup times across the plant
- Performed a thorough product line profitability analysis resulting in negotiated price increases with customers
- Pursued cost savings opportunities through operational improvements and headcount reductions
* Over the course of six months the operational and financial performance steadily turned around and no customer plants were shut down.
* Financial performance for the following year beat budget.