Operational Excellence funds growth
Results Achieved
In annualized benefits
Direct labor cost reduction
Annual impactable material cost reduction
In-year overtime
cost reduction
Client Challenge
A market leading aerospace manufacturer was faced with well-funded aggressive competitors competing on price and had a cost structure that was not market competitive. The organizational structure, value stream, and associated cost structure were driven by the dominant market segment, that was stagnating and no longer represented the future growth opportunities of the business. As such, it was important to not just take cost out but to do so in a way that funded and maximized the growth areas.
Key Solutions Implemented
- Analyzed financial trends and operational performance to understand eroding competitive position and identify key opportunities to optimize operations and reduce costs
- Implemented an operational excellence program across three sites to realign and right-size the organization, optimize processes from engineering to manufacture, and implement strategic sourcing
- Developed a culture of continuous improvement focused on identifying and eliminating issues impacting schedule, quality, and cost