CASE STUDIES

Our Client’s Successes

Plant Turnaround

Customer – Tier 1 & Tier 2 Supplier

Plant – 200k sq ft with 500 team members

Results

  • 26% EBIT improvement with Q4 EBIT at 13%
  • Elimination of unnecessary labor
  • Payback for investment in Spectrum < 90 days

Problem

  • Losing money for 5 years
  • Q1 EBIT was negative (13%)

Solution Approach

  • Spectrum engaged to assess the situation and develop an improvement plan.
  • Spectrum assumed the plant manager position, materials manager position and a CI position. It was quickly determined that a significant portion of the issues were due to a fundamental lack of basic systems and discipline on the plant floor.
  • The Spectrum “back to basics” process was applied: Supervisor training employed, discipline utilizing the shop floor SAP system installed, standardized work development started.

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Crisis Management
Customer – Tier 1 Supplier
  • OT Reduction better than forecast within 2 weeks
  • Inventory accuracy improvement from 72% to 96%
  • Labor headcount reduction from 761 to 598

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Crisis Management
Customer – Tier 1 Supplier (Canada)
  • Reduced weekly downtime by over 5 hours
  • Increased inventory accuracy by 22% in 3 weeks and achieved 98% within 5 weeks
  • Recruited and placed successful Plant Manager

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Interim Materials Manager
Customer – Tier 1 Supplier
  • Achieved targeted total inventory cost with a controlled reduction of $2.2M
  • Drove inventory accuracy improvements
  • Finished with 99.6% OTD score

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Profit Improved
Customer – Tier 1 Supplier
  • Monthly profit improved by 4%
  • Throughput improvement and schedule attainment
  • Customer downtime eliminated

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Restored Ratings
Customer – Tier 1 Supplier
  • Spectrum restored Quality and Delivery ratings within 4 months with PPM < 100 and a Delivery score of 99.3%
  • Saved $1M a month by removing all third-party resources within 3 months
  • Reduced attrition and lowered absenteeism

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