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Results - AMG Case Examples
Automotive Screw Machine CompanyRapid lean manufacturing implementation and cost reduction for $75 million screw machine company.RESULTS: Rapid deployment of Lean System and Six Sigma components and new manufacturing management approaches during four-month assignment improved productivity by 40% and reduced scrap as a percent of sale by 12-15% (to less than 3% and improving). New process management approach structures shop floor workers and management into rapid problem solving groups for on-going assurance of success. Specialty Paint and Coatings CompanyLean manufacturing and production systems assessment and improvement project for $90 million automotive paint and specialty coatings companyRESULTS: Six week project targeted excessive WIP and production planning information and chain of control. Rapidly reduced WIP by $2.2 million (40%) with no negative impact to customers. Eliminated wasteful information transfers by redesigning production control function and eliminated eight unnecessary personnel. Part profitability analysis enabled price increases from low-margin customers and "firing" certain other unprofitable customers. Net profit improved from zero to 9% in 4 months. Automotive Casting CompanyOperational planning and management of multi-plant consolidation and product re-sourcing project for $400 million automotive aluminum casting companyRESULTS: Five month project included a pre-packaged bankruptcy filing with rapid emergence from bankruptcy - facilitating an operational restructuring in which we closed five under-utilized facilities and managed the re-sourcing of $30 million of unprofitable business. EBITDA improved to 10% of sales post-emergence. Aerospace Supplier to Jet Engine ManufacturersCost and profitability analysis in support of customer negotiations for $35 million family owned jet engine component supplierRESULTS: Company reduced costs by $2.8 million annually through reductions in overtime, scrap waste, and headcount reductions. Major customers agreed to significant price increases totaling $2.5 million annually. Total 12-month net income improvement of approximately $3.8 million. Specialty Foods PackagerOperational due diligence for private equity fund targeting $50 million specialty foods packagerRESULTS: Recommended exclusion of West Coast operations from transaction due to highly competitive, low-cost markets, with increasing competition from low-cost-country sources. Equity received West Coast operations as "throw-in" ($0 transaction value), saving approximately $1.5 million in purchase price. Automotive Tier 1 Supplier (Plastics and Acoustics)Operational due diligence and review of plan of reorganization for hedge funds contemplating additional investments in $2.9 billion automotive plastics and acoustic panel supplierRESULTS: Our operational review of 14 plants found significant processing and plant issues in the plastics division - sufficient to recommend no further investment in the capital structure unless certain performance measures were met in a short time frame, which did not occur. Our financial client was very pleased with the result. Automotive Roll FormerOperational due diligence for $200 million automotive roll-forming and assembly company acquiring another roll-former/assembler, doubling its sizeRESULTS: Identified risks in combining operations, especially risks associated with Mexican operations, and provided a work plan for consolidation, which client accepted and used. The client was very satisfied with report and risk assessment. Automotive Tier 1 Supplier (Metal Stamping and Frame Assembly)Operational due diligence and review of plan of reorganization for hedge funds contemplating additional investments in $2.8 billion automotive metal stamping and assemblerRESULTS: Review of 13 North American plants showed a robust set of consolidation initiatives without adequate ties to financial reporting. The lack of integrity in financial projections created a significant issue which could not be overcome in the required time period, and therefore no further investment was made. Automotive Acoustical Panel SupplierOperational research and planning for $140 million automotive acoustical panel supplier for multi-plant consolidation into a "best-option" out-of-state greenfield locationRESULTS: Research and planning analysis covering applications and negotiations with several state development agencies, analyses of freight-out cost-penalty, utilities, labor, M&E and other costs resulted in a revised EBITDA under each of several scenarios. Resulting report very well received by Board of Directors. |