Driving Enterprise Value Pre-Transaction

Project Type: Big Win

A late-stage, privately held company was preparing to transact within the next twelve months. EBITDA and top-line goals had not been achieved and immature systems continued to hinder the business.

AMEND was engaged by the CEO to create an immediate capacity lift and to formalize business processes. AMEND mobilized a team in 72-hours and came alongside the client's team to provide operational leadership and guidance. By mapping capacity and conducting a bottleneck analysis, we identified key focus areas and uncovered technical gaps within their manufacturing processes. We also mitigated risk by updating multiple engineering systems which drove efficiency and reduced lead time.

Overview

Company Overview
- - - Industry: Industrial Manufacturing
    - Privately-held
    - $60 Million Revenue
Assessing the Landscape
- Complex and variable product mix
- Manual processes
- Integration of three legacy businesses
Identifying Opportunity
- Long lead times in a competitive market place
- High turnover
- Little data driven-decisions
- Inventory accuracy and financial controls

Results

40%

Throughput Increase

(within 90 days)

75%

Elimination of Backlog

(within 60 days)

$14 Million

Sustainable Enterprise Value Created

The Solution

Lights-Out Laser Operations

AMEND's Lindsay Crook identified quickly that the entire business bottleneck was in the laser department. Our team unlocked lights-out operations through a new management process and labor redeployment.

We partnered with G90 Engineering to eliminate inefficiencies by implementing an auto-nesting program.

Comprehensive Training Program

Our sustainable training program increased the level of technical talent inside of our client's organization. We cross-trained key positions to minimize the impact of PTO.

Additionally, we developed a compensation structure to align with the new training program, which illustrates upward progression opportunities. 100% of hourly employees are now certified in fabrication operations.

Advanced Planning Dispatch List

Previously, our client was scheduling production based on pressure from their customers, instead of optimizing customer priority and profitability. Key customers were deprioritized and operations flow was negatively impacted, resulting in high customer churn.

We created a dispatch list that prioritized the high profit, key clients at the top of the schedule. As a result, we reduced the number of interruptions to the production schedule and increased throughput.

The AMEND Assessment Process

Understand capacity and process breakdowns

Examination of staffing and departmental flow, identified where people were staffed and where the work was being held up, shift handoff analysis, and established a kanban system between departments.

Update management systems

Detailed financial review with CFO, redeployment of daily management systems and KPIs, and executed shop floor layout improvements.

Leverage best in class analytics

- Examined scheduling constraints, created robust dispatch by work center, and developed forward-looking capacity model to align with the sales pipeline.

Deliver and sustain results

- Deployed training across critical departments, rolled out a new preventative maintenance program, make vs. buy analysis, and management system reviewed daily by leadership.

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