$450k Case Study

Pipes, tubes, machinery and steam turbine at a power plant$20M Machine, Tool & Molding Manufacturer

Before: Customer satisfaction and gross margins at this company had been falling for several quarters. The firm employed an antiquated ERP system delivering inaccurate data to senior management leading to poor utilization of facilities and equipment. The current system underreported the cost of quality and management was unable to take corrective action. Without basic business measurement indicators the firm suffered from low throughput, incorrect tooling and fluctuating inventory levels. Compounding the managerial issues faced by this company was an unclear management succession plan.

After: The MAC Venture Group identified the client’s current systems and operations were misaligned. To correct this problem MAC Venture updated the ERP system and implemented policies and procedures to provide management with timely and accurate data. Facilities were updated or redeveloped to increase utilization and efficiency. Quality control issues were addressed by developing and implementing key ISO elements. The firm is on track to save over $300,000 in cost of quality issues, customer rejects has been reduced by 70% and a formal inventory program has generated over $150,000 year-to-date. MVG further assisted the company with a management succession plan ensuring that the company will continue to grow under new leadership.

Our work resulted in a total turnaround of asset utilization, throughput velocity and the elimination of waste. As a result of our work the firm is positioned for profitable future growth.