NATURE OF ASSIGNMENT:
Primary: Company Services / Financial & Operational Restructuring
Secondary: Performance Improvement
Primary Industry:Â Manufacturing & Processing
Company: Electronic component / chip manufacturer and assembly
Situation: The Company was losing money, and liquidation was being considered.
Focus Scope: A team of Focus Professionals were engaged to improve the profitability of a $65MM manufacturer of Opto-electronic devices and assemblies. Manufacturing capabilities included growing chips, close tolerance plastic injection molding, electronic component manufacturing and testing, and assembly of components into subassemblies for installation into customers’ equipment.
Tasks Performed: Focus acted as Special Advisor to Chairman of the Board and orchestrated an organizational restructuring, which included improving inventory control processes, implementing a new MRP system, developing marketing plans and developing capacity and manpower planning tools to effectively utilize manpower.
Results: Improved scheduling and inventory controls resulted in a 35% increase in productivity. Profitability increased significantly, on-time shipments and fill rates were dramatically improved, past due orders were reduced from $1.4MM to less than $150K, and Company stock increased from $0.37 to $25.25 per share.