Case Study: Turnaround Management & Restructuring

Automotive supplier

The supplier for brand cars came through acquisitions and poorly calculated jobs in the red. The detection of the problem was pretty clear, however all previous measures were inconclusive.

After a detailed analysis of production and logistics a number of problems were found, one entangled in the other. This together has caused enormous damage.

Production schedules were manipulated and fed incorrectly into the system. As a result, the interim stock, batches and crap were not correct. Years of using this basis for pricing models have led to a completely false cost accounting. Only in post-calculation with manually collected data outside of the IT system the correct numbers could be determined and by aggregating them the actual loss was revealed.

In an elaborate procedure, the collection process has been redefined, correction and control loops installed and a new cost accounting set up. By having this tools, management decisions could be addressed in a quick and successful manner. A cost reduction program was introduced using the new figures and information gathered. Altogether, this led back to profitability.