This specialist component manufacturer is a leader in advanced battery technology. The company is a subcontractor to DOD prime contractors, focused on providing advanced batteries, battery management systems, and energetic devices. 85% of the batteries produced go to the defense sector.
Although the company was already profitable with >20% margins, its new owners needed to achieve threefold
growth over the next five years. To achieve this goal, they needed to dramatically lower costs in operations and
procurement while maintaining high quality and accelerating delivery standards. This would allow them to be competitive and more innovative in existing and new commercial markets.
Maine Pointe was initially engaged 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. This resulted in a 31% productivity improvement and a nine point (45%) increase in EBITDA. We were then invited to help the company take the next step on its supply chain transformation journey toward Total Value Optimization™, ensuring that they have the right supply base and partners in place.
Our analysis of the company’s operations uncovered a ‘cost plus’ and change resistant culture. In addition, the procurement function was very immature. Our SMEs helped them better define the applications and requirements of a highly engineered, high-end technology environment. The analysis determined that the workforce could be reduced by >30% while delivering the same or improved quality and on time delivery. The challenge was to achieve increased productivity and cultural change in an atmosphere with multiple layers of control and security to ensure that Prime Contractor and DOD mandated processes were not changed in any way.
Maine Pointe utilized its past experience conducting procurement in a defense environment and dealing with complex ITAR compliance and NOFORN regulations, to streamline the company’s production processes rather than the manufacturing steps of the product. Our operations excellence, strategic procurement and Leader and Organization Improvement (LOI) professionals worked hand-in-hand with our client. Together we developed and delivered the tools and training required to integrate procurement and operations processes within a dynamic culture
With an engaged and enthusiastic workforce and significantly reduced cost base, our client is now empowered to make better choices. This gives them the ability to rapidly respond to changing market requirements, penetrate new markets and grow their business while maintaining the highest levels of security and DOD compliance.
Maine Pointe's experienced team helped out client to: