Situation
The client is a medium-sized automotive supplier. Following the takeover by a strategic investor, the aim was to develop the company from a niche supplier to a 1st tier series producer. A production site was established in Eastern Europe, where newly acquired projects were to be launched. The plant was unable to meet customer requirements in terms of quality and quantity in terms of organization, personnel and technology. Costs exploded and the company slipped into a loss-making earnings crisis. In this situation, I was given the task of taking the lead as COO/taskforce manager, ensuring communication with stakeholders and leading the company back on the road to success.
Challenges/scheduling
- The crisis was so far advanced, both economically and in terms of customer relations, that immediate measures had to lead to significant improvements without delay.
- The first step was to reduce customer pressure and replace daily trouble shooting with targeted measures. This was achieved by bringing in qualified personnel from sister companies and personnel service providers at short notice. 50 employees to 130 employees so that production capacity and the requirements for quality and performance could be permanently guaranteed. The areas of production, procurement, logistics, complaints management with measurement technology, engineering and controlling were established and strengthened.
- A functioning materials management system and a quality management system have been established.
- To reduce costs, a task force was set up with local employees and specialists from the sister companies. The implementation and impact of the optimization programme measures were monitored and controlled in terms of performance and finances using a system of key figures.
- Key lean management principles were introduced to stabilize and improve processes.
The mandate was initially scheduled for 6-9 months, but was extended to 11 months.
Sustainable result
- The crisis mode has been brought to a lasting end. The supply situation was stabilized. Business processes are based on standard procedures.
- The organization was raised to the required level in terms of capacity and qualifications through onboarding and training, and customer confidence was regained, which was underpinned by the acquisition of further orders.
- The turnaround has been achieved. The company returned to profitability.
- Employee satisfaction increased significantly. Fluctuation was reduced to a normal level.
Conclusion
Thanks to the rapid intervention and consistent implementation of immediate measures followed by organizational and performance measures, the company was able to achieve a turnaround in a short space of time, regain customer confidence and get back on the road to success.