Company:
The company is a contract manufacturer in the steel sector, using tube laser and laser cutting equipment to produce customer requests ranging from simple sheet metal blanks to elaborate bent and welded steel components. The company has its headquarters and main plant near Vienna, with other locations in Croatia and Bosnia and Herzegovina.
Baseline:
Partly chaotic working methods, lack of order in the production areas and no clearly defined areas of responsibility lead to high inefficiencies and waste. Machines stand still for several hours per shift because the machine operators are looking for the material of the follow-up orders. Poor performance makes it impossible for individual employees to experience success and leads to a negative mood, tension and a lack of motivation. Poor performance in the production area results in poor delivery performance and causes a strained relationship between sales and operations. Inefficiencies are compensated with several temporary workers and thus cause additional costs.
Goals and objectives of the project:
General objective
:
- Create a contemporary profitable company, with orderly and efficient operations.
- Merging of the various sites in terms of working methods and understanding of quality, including in administrative areas.
Goals distribution
:
- From reactive processing of requests to proactive selling of free production capacities.
Goals Administration
:
- Create coordinated working methods between the sites in Austria and Croatia.
- Preparation of ERP conversion in Croatia and Bosnia and Herzegovina.
Measures and implementation steps:
Efficiency
:
- Increase efficiency by creating internal order and cleanliness. The implementation of lean management methods such as 5S as well as the optimization of workflows and processes at individual workplaces increases professionalism in the production area.
- The optimization of internal logistics, the relocation of shelves and storage locations, as well as a clear regulation of material provision at the plants, bring calm to the team and a sense of achievement in all areas due to the increased performance.
- Clearly defined responsibilities and accountability avoid misunderstandings and friction losses.
Motivation:
- Creating a trusting and positive working atmosphere through open straightforward communication at all levels. The space for suggestions for improvement was created and suggestions were implemented promptly.
- Thanks to short decision-making paths and rapid implementation, the change management process was perceived tangibly and positively by all employees.
- Clear guidelines, recognition of (partial) successes achieved and respectful treatment increase appreciation.
Distribution:
- Requirements for price adjustments due to massive increases in energy and personnel costs lead to a round of negotiations with existing customers, resulting in a significant improvement in margins.
- In the course of discussions with customers, it was also possible in some cases to significantly increase the number of parts and components manufactured to date, thus generating additional orders.
What successes and results did the interim management assignment bring?
Earnings improvement:
- At the beginning of the interim project, the company stood at a slightly negative result at the end of the 1st quarter. Semiannual 2022. After 6 months, a clearly positive economic result (>3% POA) adjusted for special effects was achieved at the end of the financial year. The result for the first two months of 2023 is significantly above the ambitious budget, in which a result of just under 5% POA is planned.
Leadership:
- A motivated team now creates more value with significantly fewer resources (personnel costs) in a neat and structured work environment. A high level of efficiency creates the basis for a sense of achievement for each individual employee and thus a positive mood throughout the team.
External impact:
- The new order and cleanliness leads to openly expressed appreciation from customers during audits and plant tours. The company presents itself as a competent and professional partner to customers and suppliers.
- The management style is characterized by clear guidelines, recognition and mutual respect.
Conclusion:
- Without the personal commitment of the interim manager, the turnaround would not have succeeded!
Would you use GOiNTERIM again?
GOiNTERIM was a good companion and contact also during the whole interim project. And we have also successfully commissioned the search for a successor in a permanent position. For further management topics, we will certainly talk to GOiNTERIM again.