Manufacturing, Distribution and Trade Success Story

Assessing Operation Excellence for an Automotive and Marine Manufacturer

Business Situation

• The client is a Midwest based 250 million dollar, publicly traded designer, manufacturer and distributor of power transmission and marine equipment. For over 85 years, the client has provided power transmission solutions for a range of industrial and transportation equipment applications.
• Although the client has experienced recent financial improvements and increased market share, various economic and competitive pressures have continued to emphasize operational issues.

Key Issues

• The client recognized the need to pursue strategies oriented towards growth, leverage and cost reduction. The Revere Group operational excellence assessment project was a viable method of identifying key cost reduction and leverage opportunities, not normally visible to many management teams. 

Outcomes

• The operational excellence assessment identified and quantified opportunities to drive cost savings. This process involved individual interviews, team meetings, and on-site exploration of the functional areas being addressed during the one week period.
• Revere utilized benchmark data and real world expertise to prioritize the opportunities, which showed how to improve and why. A detailed implementation roadmap was provided to maximize Return on Investment (ROI) while minimizing day-to-day business disturbances. 
• The assessment identified 4 main areas of opportunity to reduce costs and increase market share: inventory management, order management, operational planning, and education and training.
• The conservative captured savings/improvements estimates for these opportunities included, revenue increases of 15%, inventory reduction by 35%, reduction in expediting costs by 75%, increased customer service levels to above 93%, and an increase in forecast accuracy above 95%.