In early 2020, the interim manager was commissioned by a company in the plastics processing industry in Baden-Württemberg to analyze the operational areas at the site and implement sustainable process optimizations. As part of a group of companies, the manufacturer of hybrid components for the electrical industry had been struggling with a negative earnings trend for several years despite a stable order situation. The recently appointed management team was aware that a rapid trend reversal was essential for the continued existence of the site.
Focusing on production and cooperation
When taking stock, the interim manager quickly realized that previous attempts to increase efficiency and quality had not improved performance, but had actually worsened it. For example, the company had set up a close-knit network of follow-up and outgoing inspections to counteract the above-average number of complaints. This approach not only required a great deal of resources. It also led to employees relying on the controls - and losing focus on the production itself. Therefore, one of the interim manager's first tasks was to change the mindset of managers and staff in production: away from control and towards a focus on stable production processes. The interim manager identified a second weakness in the lack of coordination between the company's departments.
Quick wins: reducing waste and significantly increasing output
In order to refocus on the production processes and cross-departmental cooperation, the interim manager initiated comprehensive error analyses with the managers of all departments involved in production. Quick wins were identified that made it possible to significantly reduce waste with little effort and increase output by up to 35 percent. Outsourcing rework not only reduced costs, but also freed up personnel capacity for production. Further measures included upgrading existing but unused automatic control systems and introducing targeted incoming goods inspections. This also significantly increased process stability and reliability.
Cross-departmental production planning optimized
In addition, the interim manager introduced daily store floor meetings with all department heads to increase communication between all departments. The focus here was on coordinating the production plans in the production departments in relation to the current order situation. This led to a reduction in stock levels of intermediate products as well as a timely and needs-based supply of final assembly. As a result, production downtimes in final assembly due to missing components were avoided.
Complaint costs reduced by 70 percent - commissioned with new mandate
The interim manager achieved the mandate targets within eleven months and sustainably increased efficiency. The number of internal and external complaints fell by 75 percent and the cost of customer complaints was reduced by 70 percent. The improved quality also made it possible to better manage external rework. The management consistently pursued the chosen path - and the company returned to profitability in the first half of 2021. Due to its success, the interim manager was commissioned with a further mandate within the group of companies.
