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
CASE STUDIES
Our Client’s Successes
Restored Ratings
Customer – Tier 1 Supplier
Plant – 1.4M sq ft with 3,200 team members
Annual Plant Revenue – $750M
Results
- 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
- Improved Pricing, Manufacturing, & Future Program structuring
- Payback for investment in Spectrum was < 90 days
- Installed systems and disciplines in the organization gave sustainable stability and profitability after Spectrum exited the engagement
Problem
- Not meeting Customer expectations for Quality or Delivery score at 74%
- Losing $9M/ month mostly in Premium Freight (in & out) + Direct Labor, and third-party resource costs
Solution Approach
- Spectrum engaged to assess the situation and develop a containment plan to secure Quality & Delivery.
- Spectrum assumed the General Manager position, Production Manager position(s), a 5-person Materials Expert Team, 3-person Quality Engineering Team and a Data Analyst position.
- It was quickly determined that the immediate concerns were coming from poor organizational structure, direct labor attrition & absenteeism, poor capacity planning and inventory accuracy challenges.
- The GM took complete accountability for Sales, Program Management and Manufacturing.
- Structure & Personnel assessments led to a decentralized organization, recruitment of proper talent set personnel and dismissal of non-value added overhead.
- Spectrum changed the shift patterns and wage structure.