After-Market Manufacture

Challenge

An engineering design firm specializing in A/C repair parts for the automotive industry faced increased complexity as its product offerings grew from just a few to over 100.  Planning and operations were unable to keep up with the increased demand, capping their top-line growth.  The CEO brought in The Prokür Group to develop a solution and put the company back on track.

Complication

The Prokür Group assessment, which included the Value-Accelerator Workshop, discovered several complications:

• Poor Governance model and Performance Management system left the leadership team unable to affect key performance metrics like Inventory Accuracy and On-Time-Delivery.
• Production and Material Resource Planning tools were not designed for purpose, leading to inventory shortages and production stoppages.
• General lack of training and skilled labor for key functions such as Procurement and SI&OP.

Approach & Solution

• The Prokür Group developed a multi-pronged strategy to improve end-to-end operations and customer service levels.  An operational assessment was conducted, leveraging the Accelerator Workshop results and detailed process mapping was completed.
• An Interim VP of Operations was placed to drive and implement the strategy.
• A corporate-wide governance model restructured the operational team to achieve business goals and objectives and foster a culture of collaboration, accountability and problem solving.
• New processes streamlined and/or integrated included Order-to-Cash, SI&OP, Inventory Management.  An MRP was installed and the Warehouse was reconfigured to promote flow and minimize loss.
• The efforts by The Prokür Group resulted in: a 300% increase in production capacity; Improved on-time delivery (OTD) from 49% to 80%; Improved inventory accuracy from 40% to 80%, leading to record revenue growth in Q1 and Q2 of 2022; Reduced core product costs by 28% through strategic sourcing initiatives.