Automotive

Organization

    Multi-Billion Dollar Marketer, Wholesaler of Aftermarket Vehicle Parts

Challenges

  • The Company wanted to rationalize the independent distributor network from thousands to just under 100
  • The Company needed to qualify the remaining distributor’s participation based on capacity to grow, creditworthiness, operational processes and business plan
  • Distributors needed assistance in developing a detailed long-term business plan for expansion

Approach

  • Facilitated development and management of processes for scheduling, monitoring and execution of this plan
  • Streamlined program execution by developing standardized processes, templates and financial models
  • Performed detailed operational and financial due diligence on each distributor
  • Assisted each distributor in developing a detailed long-term business plan for expansion

Results

  • Assessed the operational and financial viability of each distributor
  • Outlined the plans for expansion
  • Identified the program risks
  • Developed the financing structure alternatives
  • Identified opportunities for performance improvement

Organization

    $430 Million Casting Products Manufacturer

Challenges

  • History of negative cash flow
  • Declining sales and margins
  • Accounting irregularities discovered
  • Hoped for efficiencies of recent acquisitions not realized
  • Short-term cash reduced by shut-down costs at certain plants
  • The Bank Group, BBK’s client, had recently forgone its right to accelerate the loans and foreclose on collateral

Approach

  • Assessed the financial and operational viability of the Company
  • Determined that the best alternative for the Company would be to sell its non-core units and/or unprofitable subsidiaries and use the proceeds to reduce funded debt
  • Recommended turnaround consulting services

Results

  • Several non-core business units were sold
  • Two unprofitable subsidiaries were closed down
  • Funded debt was reduced by $5 million

Organization

    $35 Million Manufacturer of Thin Wall Stainless Steel Vehicle Exhaust Manifolds

Challenges

  • Scrap, on a 8.1 liter exhaust manifold, was occurring at $1.3 million annual rate
  • Stress cracks (“hot tears”) and leaks on majority of production
  • Current process could not achieve production volumes
  • High scrap rate of sand cores
  • Part quality compromised by welding repairs
  • Porosity issues and field failures

Approach

  • BBK set control parameters around stainless steel molten temperatures, sand chemistry and hold cycles
  • Eliminated solid sand cores and decided to manufacture our own shell cores
  • Eliminated gate cut off process which was throughput constraint, installed programmable HD laser, robot controlled cells
  • Installed automatic leak test machines

Results

  • Reduced scrap ratio from 30% to 3%. Improved first time quality to 90% from 40%
  • Reduced gas holes to under 1% and eliminated core scrap completely
  • Doubled through put and eliminated 43 direct labor employees
  • Eliminated field failures and machining scrap
  • Returned company to preferred status and profitable

Organization

    $250 m Manufacturer of Wire Harnesses and Electrical Components, Mexico

Challenges

  • The manufacturer’s parent company in North America was experiencing financial difficulty
  • Led to operational issues for the manufacturer such as interrupted material flow from vendors and labor disputes

Approach

    Performed a manufacturing “intervention” which included:
  • A parts bank build
  • Improved throughput
  • Identification and production acceleration of alternate supply source
  • Identified customer owned tooling and equipment requirements for manufacturing transition
  • Coordinated logistics for material transport and storage at regional locations

Results

  • Eliminated risk to customers assembly operations by improving material levels, systems and throughput
  • Coordinated the outsourcing of manufacturing processes
  • Reduced overall time and risk requirements
  • Stabilized production systems

Organization

    Manufacturer of Aluminum Extrusions and Machined Products

Challenges

    Launch of a complex new product was hampered by the following:
  • Manufacturing process was unproven for run rate and/or tolerance.
  • Lacked an integrated production scheduling system.
  • A product cost system did not exist.
  • Lack of staff and technical expertise.
  • Management structure was unclear and undefined.
  • Lacked comprehensive action plan.

Approach

  • BBK brought in its launch management team.
  • Additional support, both technical and operational, was obtained in welding, Quality, engineering, scheduling, costing and human resources.
  • A detailed action plan was developed and implemented.
  • Productivity rates were improved for gauging, welding, repair, inspection and shipping.
  • Capability and reliability of work centers were reviewed and improved.
  • Procedures and systems were documented and improved.

Results

  • Productivity rates were improved for gauging, welding, repair, inspection and shipping.
  • Capability and reliability of work centers were reviewed and improved.
  • Procedures and systems were documented and improved.
  • Supplier achieved production rates necessary to meet customer ship requirements.

Automotive Professionals

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