Restructuring of the manufacturing industry Mechanical engineering

Task

  • Loss-making company
  • Commissioned by the holding company to optimise processes and return to profitability
  • Furthermore, staff turnover was to be counteracted

Industry/ Function / Environment / Expert

  • Mechanical engineering company
  • Production management
  • Environmental technology Wilhelm Dahm
  • The managing director should remain in office, but his tasks should be limited to sales in order to ensure that the corresponding orders are received.
  • Design, procurement and production were to be shifted to the CRO’s area of responsibility.
  • First, the processes had to be analysed in order to identify the cost drivers by means of key figure analysis.
  • Furthermore, it was necessary to find the reasons for the loss of staff and to counteract the fact that the market does not have enough experts in this area.
  • Demands of the CEO on the staff beyond the normal level led to overload and dissatisfaction among the staff
  • The micromanagement of the CEO caused further employee turnover
  • Analysis showed that the quality management was hardly developed, resulting in the service department being overburdened to correct the deficits with the customers
  • Lack of structures in the supply chain led to idle production, which turned out to be one of the biggest cost drivers
  • In the meantime, the reputation had suffered so much that the holding company was advised to close the company, integrate it into the existing infrastructure of a similar subsidiary and restart it without the CEO.