CUSTOMER CASE STUDY

The client made a strategic acquisition of a family-run US operation. However, this business was facing challenges with revenue growth and margin expansion, despite a surge in demand driven by the semi-conductor industry.

Results

USD 1.4M Margin improvement
60 % Capacity increase
33 % Y over Y revenue increase

Story

The client is a manufacturer of UHV valves and chambers serving the semi-conductor and coating industries. Supply chain, planning and manufacturing capacity issues created an increasing backlog resulting in late orders, lower margins and dissatisfied customers.

To address these issues, we embarked on a 7-month intervention focusing on revenue delivery, enhanced manufacturing capacity, margin improvement, and supply chain visibility/efficiency.

We conducted a comprehensive assessment to identify the root causes of poor performance. With a clear understanding of the challenges, we set out to implement a range of solutions. Our efforts targeted improvements in the supply chain by optimizing inbound material processes, refining planning through better factory scheduling and execution, and increasing overall capacity by optimizing both machine and human resources.

By adopting a strategic and holistic approach, we aimed to transform the client’s operations and mitigate the issues causing delays and inefficiencies. Through these concerted efforts, we sought to create a more streamlined, robust, and customer-centric manufacturing process that would ultimately lead to greater customer satisfaction and improved business outcomes.

Conclusion

The program led to remarkable outcomes for our client, including a staggering $1.4M gross margin improvement through streamlined operations and the implementation of S&OP and capacity planning tools. Targeted hiring in Planning and Procurement combined with a strong inventory cycle count process enhanced the supply chain and drove radical improvements in inventory management. Our recommendations on automated welding and machining drove a robust capacity expansion with over 20 targeted initiatives, supported by a capital expenditure commitment, leading to a remarkable 60% increase in overall capacity. These data-driven achievements position our client for continued growth and success in their industry.

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