Driving change with senior level leadership
Aircraft Company – Immediate Operations Overhaul
The producer of the world’s leading small sports aircraft had just terminated their Head of Operations and had initiated a search for a replacement. The company had experienced several bankruptcies over the last few years and was in a difficult cash-flow financial situation, due to ongoing problems both with delivering aircraft on time and meeting their customer’s quality expectations. Morale of the production work force was at an all time low causing very high absenteeism and labor turnover. Medium to long-term profitability had never been achieved and their Board of Directors and shareholders’ patience was definitely at the limit.
It was obvious to all of these individuals that manufacturing operations needed to be evaluated and good manufacturing practices (GMP) put in place to grow the business more efficiently and effectively. The company needed help quickly to develop and implement a plan to significantly improve both the delivery and quality of aircraft.
Our Interim Executive was hired and started to lead the manufacturing management team ten days after the first briefing. After an in-depth review of the operation, several teams were established chaired by our executive to address the 3 – 4 top problem areas and to start to re-build the executive team.
Our Interim VP executive successfully:
- Improved inventory accuracy of all classes of stock from less than 55% to 95+%.
- Appraised all senior and med-level manufacturing operations staff resulting in termination or reassignment of some 35% of these staff members.
- Reduced daily out of stock purchased and manufactured in house parts availability by approximately 90%.
- Established a ranked list of the major projects required for the plant.
- Initiated a program to outsource major assemblies of the aircraft from overseas vendors.
- Implemented improved quality and performance metrics.
- Improved on time deliveries approximately 48% over prior year through introduction of new manufacturing practices.
- Established a high level of credibility in manufacturing operations information with the Board of Directors by providing an in depth, honest and professional appraisal of the problems and solutions recommended to meet company objectives.
The company was ultimately taken private as part of the strategic solution.
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