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Diversified Heavy Industrial Company

Due to inefficient use of capital, this company/division with a workforce of 2,300 was producing 75k tons of product per annum, well below industry standard, and was losing approximately $20-$30m per year.

 

After reviewing the situation in detail with the client, the following actions were undertaken to address the productivity and performance issues impacting the business;

 

* Implement improved employee incentives aligned to business plans and budgets

* Restructured the business into smaller more accountable units

* Implemented weekly reporting across all units to enable improved management reporting and decision making

* Instituted innovative manufacturing methods that were world best practice

* Increased use of contractors across the business

 

As a result of these activities, the client achieved the following outcomes;

 

* Achieved profitability EBIT $40m

* The restructured business reduced employee numbers to 670 whilst increasing output to 200k tons

* Significant increase in staff performance and accountability