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Case Study 1 – Manufacturing
A Santa
Monica based manufacturer of consumer and industrial laser products had grown at more than 50% per year. They out stripped their ability to fund operations; payables and receivables were out of hand. Products traveled
through a maze of vendors and subcontractors. Orders were shipped light, or missed outright; and what was shipped often failed in use. Customer Service spent all day trying to field complaints with no data. Employee
morale was at an all time low. The company was experiencing meltdown. Management Overload immediately instituted cash management procedures.
Simultaneously, we tackled manufacturing and quality control issues. Management Overload then established, and temporarily managed, in-house manufacturing capabilities and replaced the Vice President of Manufacturing
who could not keep up with the company's growth. On time, complete orders are now the rule, not the exception. Quality has improved twenty-four fold. Direct labor costs per unit have fallen to one-third. Profits have
improved from non-existent to sinfully high – and growing. Cash flow has greatly improved and the company has begun the process toward an IPO.
Case Study 2 – Service
An east county mail processing firm was experiencing growth in excess of 100% per year. Strangely, profits were plummeting and the owner didn't
have a clue as to how to resolve this problem. In desperation, Management Overload was called in to address the
problem. We quickly discovered that with rapid growth, the existing mail processing procedures had become overwhelmed and had completely broken down – resulting in greatly increased costs. Additionally, we learned
that the highly competitive drive of sales management had resulted in some less than desirable contracts.Management Overload streamlined and automated the mail processing
operations, greatly reducing costs. We then, for the first time in the company, developed accurate cost data for the services rendered. Finally, Management Overload renegotiated or eliminated unprofitable contracts –
resulting in moderated growth and positive cash flow with very, very healthy profits.
Case Study 3 – Machine Shop
A Huntington Beach manufacturer of high-precision metal parts for the aerospace industry fell on hard times as a result of widespread cutbacks in
the industry. The company knew it was excellent at what it did, but was at a loss as to how to reengineer itself.
The answer was to look at different markets. Working with the company president, Management Overload reoriented the business to manufacture parts for the automotive and film industries. Together, we ended up doubling
their sales. Interesting, the changeover didn't require expensive retooling. It did require some restructuring and reorienting marketing to a different client base – but
margins were four times higher than what they were getting in the defense business.
Case Study 4 – Warehousing & Distribution
A sixty-year old office products distribution company was dying slowly. A brother / sister management team had recently taken command of the company from their ailing parents. Their legal council advised the family
either to sell the company or call Management Overload for help. As they wanted a legacy for future generations, we were brought in.In our initial analysis we discovered that inventory was being managed in an
intuitive manner, payables and receivables were handled manually and prices were considerably below the competition. Deeper investigation revealed that the parents, having come from World War II Germany, were
fearful of anyone knowing the intricacies of their business - even their long-term loyal employees. Further, upon surveying customers, we found that price was not their key concern. Of primary concern to the customers
was that they receive all the products they wanted, when they wanted them - no short orders, no substitutions and no late orders. Price typically ranked fourth to sixth on the customer's list of priorities.
With this knowledge, we convinced the owners to increase prices. Much to the delight of the owners, they didn't experience a mass exodus of customers, as they had feared. Instead profits took a substantial leap. Our
next steps were to implement contemporary warehousing and distribution management tools and practices. Today, inventory levels have been reduced by more than 50%, on-time
fulfillment of complete orders has risen from 79% to above 98%, order volume is up 43% and profits are unsurpassed in the company's history. |
