Case Study 1: Precision Machine Shops
COMPANY PROFILE
| Sales: | £15 Million |
| Employees: | 150 |
| Products: | precision parts |
| Markets: | oil & gas, aerospace, defence, SPE |
ASSIGNMENT TYPE
Led turnaround as MD
IMMEDIATE ISSUES
- £150K loss in Aug against forecast of £50K profit
- Mgt team (of 14) not able to forecast Sept profit
- Headroom could only fund 3 months losses
- No recovery plan
- Major contractual threats from a global client
- ISO9001 certification required within 4 months
- MRP system falling over
KEY TURNAROUND ACTIVITIES
- Changed FD & Operations Director
- Raised 500K extra price from global client
- Stopped selling SPE, focused on oil & gas
- Introduced key account selling process
- Phased closure of SPE factory
- Relocated separate aero cell into main site
- Transferred design team into parent company
- Reduced mgt team from 14 to 6
- Introduced good work filter & controls
- Implemented roll out of new ERP software
- Introduced monthly workforce briefings by MD
- Introduced new suite of financial controls
- Over communicated progress to shareholders
IMPACT WITHIN 12 MONTHS
| Before | After | |
| Monthly (Loss)/Profit | £(140)K | £60K |
| Gross Margin % | 18% | 34% |
| Monthly o/heads | £245K | £167K |
- ISO 9001 certification achieved within 4 months
- new ERP system working within 12 months
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