Very small-scale polymer container precursor manufacturer is losing money, costs increasing and erratic staffing.
Evaluate whether the operation is a candidate for turn-around or should be salvaged. If turnaround then execute to stable business.
Turn-around selected by BOD followed by: a) cost reduction through staff reduction and time shifting electric use to off-peak hours; b) implementation of ERP system to identify and control costs; c) negotiated supply contract expansion-extension with primary client; and, relocated equipment and personnel to new facility to accommodate increased production. Finally, interviewed and trained successor personnel to include General Manager.
Within 2 years the company doubled revenue, increased both operating and profit margins and achieved stable staffing with increased capacity for production.
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