Conflicts and lack of structure lead to crisis

  • Sector:
    special machine construction
  • Company type:
    family business, 2nd and 3rd generation
  • Size:
    approx. 30 employees
  • Location:
    Germany
  • Responsibilities:
    restructuring management, cost optimisation and process optimisation
  • Concept phase:
    Turnaround management

Initial situation

PLUCH Interim Management was commissioned by a management consultancy to implement appropriate restructuring measures in a critical economic situation.

It became apparent that the conflicts between the managing partners at the time of accepting the mandate were increasingly visible in the company and blocked internal processes in many areas. In addition, production management and engineering introduced additional sources of error into production and the order costs were heavily impacted by error correction, claims and follow-up work.

As a result, costs no longer matched sales and earnings came under pressure as a result.

Implementation

First of all, PLUCH Interim Management integrated the employees into the reorganisation, defined the responsibilities and directly implemented a clear organisation. This also necessitated adjustments to the personnel structure, which led to cost reductions and process improvements. At the same time, production management was newly filled with a manager from the 3rd generation of the family.

The workflows in production in particular were complicated and led to errors. A targeted conversion of the entire production area in 3 phases on the basis of area planning brought about decisive advantage in the flexibilisation of individual and small series production with simultaneous nominal enlargement of the production areas. Existing sources of error were thus significantly reduced, processes were accelerated and an optimisation of the overall production times was achieved.

Simplified production processes according to the ‘lean concept’ reduced the amount of work per project and reduced team conflicts between individual production teams. Repair and service activities were integrated. The gradual outsourcing of selected component groups made it possible to increase the sales volume of manufactured products.

Process tools for sales and cost target/actual comparisons, order processing, production planning and, above all, project planning for special projects were introduced to provide better orientation for managers and employees. In materials purchasing in particular, the implementation of clear budgets and a regular target/actual comparison improved the controlling of cost developments. Furthermore, the tracking of project orders and the coordination of service and complaints led to an acute awareness of problems, improved cooperation and customer focus.

We worked with the shareholders on the strategic orientation and realistic corporate planning, which provided a transparent basis for decisions and a short-term positive outlook. Appropriate communication with the employees made it possible to clearly convey which goals needed to be worked on promptly.

In engineering, a structured documentation of all products was introduced and the first steps were made for planning in 3D models. In order to standardise the usability of the products while at the same time making them more flexible, planning of a software-based control system was started.

And in proposal management, an active approach to attracting customers (instead of waiting for customers to call!), a clearer layout of the proposal management system and a new price list established a good basis for the following business years.

Project scope

  • Developing and implementing a reorganisation concept
  • Conflict management between shareholders
  • Creating a planning basis for sales and personnel per product line
  • Analysing the strengths and weaknesses of existing competences
  • Establishing a potential successor in the primary leadership function
  • Clarity and transparency through KPI management
  • Reducing personnel and production costs
  • Improving compliance with delivery deadlines

Results

Increased production capacities through process-oriented work improved the reliability of delivery times. The necessary cost reduction was achieved by greatly reduced errors and complaints, organisational adjustments and strict cost management.

Profitability doubled within 2 years, double-digit growth, short-term strategy implemented in both product and project business, development of a positive working atmosphere and integration of the 3rd generation.

La coopération nous maintient forts
Thomas Pluch est membre de
2020 Pluch Interim Management pour les PME | entreprise moyennes | entreprise familiale
D - 47800 Krefeld, Hinter Sollbrüggen 30 | Cette adresse e-mail est protégée contre les robots spammeurs. Vous devez activer le JavaScript pour la visualiser.