Our client is a leading global manufacturer of advanced magnetic materials and related products. The company’s range of products includes parts for electronics, magnets and magnet assemblies for use in a wide variety of fields.
Despite a multimillion-euro turnover, the company was not posting an operating profit and was hindered by a highly unionized environment and a restrictive collective bargaining agreement. Two business units were facing low growth and high stock, while the third had high growth, low productivity and struggled to fulfill client demand. The new owners wanted to transform the performance of the business and return it to profitable growth.
To achieve this goal, they needed to dramatically lower costs in operations while maintaining high quality and delivery standards, allowing them to be competitive in new, commercial markets.
Our challenge was to infuse best practice and operational excellence across the entire organization and develop the management team to enable them to take control of their business and drive performance improvements without laying off any staff.
Our analysis of the company’s operations uncovered several areas to be addressed. Procurement had little or no control of cost, no strategic sourcing and missed opportunities to bundle demand to achieve better prices or service levels. The supply chain processes were broken, with stock spread across the business units. Productivity was only at 10% overall equipment effectiveness (OEE) and only 50% of management operating systems were in place. Equipment was old and poorly maintained, with an absence of a robust maintenance and spare parts strategy. There were no standard operating procedures, leading to inconsistencies, delays and variable quality in the set-up and operation of production processes. Long lead times, a large backlog and increased competition from Asia were eroding their market share. Management knew that they needed to deliver better quality and service but were unable to determine the root causes of low productivity.
To solve this problem, Maine Pointe’s operations excellence, procurement and logistics professionals worked hand-in-hand with our client. Together we developed and delivered the tools and training required to rebuild a dynamic culture based on ownership.To achieve this we:
With an engaged and enthusiastic workforce, significantly increased throughput and a reduced cost base, the organization now has the ability to actively manage and grow its business.
Maine Pointe’s experienced team worked with senior executives, their teams and union representatives to transform operations, logistics and procurement functions: