Case Studies

746 views
708 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
746
On SlideShare
0
From Embeds
0
Number of Embeds
431
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Case Studies

  1. 1. OPTI™©Driving Profitability And Security Through Process Case Studies Proprietary Exclusive Property of Operational Productivity Tool, Inc.
  2. 2. Case Study 1 OPTI ConnectivityElectric Motor Company Situation: OPTI™© (“OPTI”)Tools Used: • Revenue of approximately • Sustainability $80 million • Three plants • Optimizer • 400 employees • Roadmap • Hemorrhaging cash • Retool • Loss of market share • Highly leveraged • Severe quality issues • Customer litigation drain Proprietary 2 Exclusive Property of Operational Productivity Tool, Inc.
  3. 3. Case Study 1 OPTI ConnectivityElectric Motor Company Key Metrics Before OPTI Key Metrics After OPTI Operations: Operations: • Productivity at minus 5% • Got productivity above 3% (8% improvement) • Massive product inefficiencies • Increased product efficiency by average of 7% Finance: Finance: • Bloated cost structure • Drove $3 million from cost structure • Highly leveraged cost structure • De-leveraged 100% in eight months • Inefficient supplier network • Increased on time deliveries to 92% -- significant increase in “Velocity of Cash” Marketing: Marketing: • Abundant useless inventory • Drove inventory down by 64%; increased turns to 17 Customer Care: Customer Care: • Delivered quality at 27,500 defective parts per • Drove delivered quality to 1,100 defective parts per million million • Received the John S. Smith Champion for Quality award Proprietary 3 Exclusive Property of Operational Productivity Tool, Inc.
  4. 4. Case Study 2 OPTI ConnectivityPower Conditioning Company Situation: OPTI Tools Used: • Revenue of approximately • Sustainability $46 million • Two initial plants • Optimizer • 175 employees • Roadmap • Severe quality issues • Retool Proprietary 4 Exclusive Property of Operational Productivity Tool, Inc.
  5. 5. Case Study 2 OPTI ConnectivityPower Conditioning Company Key Metrics Before OPTI Key Metrics After OPTI Operations: Operations: • Bloated inventory • Reduced inventory by 40% • Highly burdened overhead costs • Eliminated 37% of overhead costs • “Earned Hours” of four hours per day • Increased “Earned Hours” to over Seven Hours per Day Finance: Finance: • 25% Decline in Revenue • Grew sales 12% from bottom • Inefficient supplier network – 47% On- • On-Time deliveries increased to 82% Time deliveries Marketing: Marketing: • Loss of position in two vertical markets • Regained position in both markets and expanded into a third market Customer Care: Customer Care: • Suffered from national recall of installed • Completed change-outs to their satisfaction in less than 6 product base (Approx. $6 million) months • Sold to industry competitor Proprietary 5 Exclusive Property of Operational Productivity Tool, Inc.
  6. 6. Case Study 3 OPTI ConnectivitySheet Metal Fabricator Situation: OPTI Tools Used: • Revenue decline from $4.8 • Sustainability million to $2.5 million • Single plant with 51 employees • Optimizer • Hemorrhaging cash/severe tax • Roadmap problems • Retool • Highly leveraged/unable to purchase raw materials • Loss of major customer • One large customer accounted for 50% plus of sales Proprietary 6 Exclusive Property of Operational Productivity Tool, Inc.
  7. 7. Case Study 3 OPTI ConnectivitySheet Metal Fabricator Key Metrics Before OPTI Key Metrics After OPTI Operations: Operations: • Inefficient production flow • Restructured and drove Lean/Six Sigma through entire operations • Routinely late deliveries • Implemented an integrated CAD/CAM system to facilitate rapid • Low “Inventory Turns” (Approx. 2X) and more accurate quoting • Drove raw material turns to 22X Finance: Finance: • Highly leveraged cost structure • De-leveraged 75% in eighteen months • Negative shareholders net worth • Drove Balance Sheet to a positive book value Marketing: Marketing: • Highly concentrated in one customer • Re-negotiated with major customer to higher margin • Identified and secured other high margin accounts in new verticals Sales: Sales: • $2.5 million upon entry • Drove sales to a record $5.8 million • De-concentrated sales base where top 16 companies accounted for 76% of sales Proprietary 7 Exclusive Property of Operational Productivity Tool, Inc.
  8. 8. Case Study 4 OPTI ConnectivityTechnology Product Manufacturer Situation: OPTI Tools Used: • Revenue just over $2 million/negative net worth • Sustainability • Single plant with 40 employees • Optimizer • Aging products in commodity • Roadmap market • Great industry reputation • Retool • Production floor totally constipated • Significant portion of sales through independent distributor Proprietary 8 Exclusive Property of Operational Productivity Tool, Inc.
  9. 9. Case Study 4 OPTI ConnectivityTechnology Product Manufacturer Key Metrics Before OPTI Key Metrics After OPTI Operations: Operations: • Inefficient operations • Restructured the total plant and maxed internal capacity • Producing at less than 10% plant • Implemented Lean and Six Sigma capacity • Outsourced to strategic vendors New Product Development: New Product Development: • Existing product line tired and • Took from concept to design and manufacture market-leading commoditized product Marketing: Marketing: • No marketing plan • Developed and implemented a comprehensive strategic • Minimal international presence marketing plan • Drove 30% of sales internationally Sales: Sales: • Just over $2.0 million upon entry • Drove sales over 5X the first year • Developed and grew internal sales force • Sold for significant multiple to strategic acquirer Proprietary 9 Exclusive Property of Operational Productivity Tool, Inc.
  10. 10. Contact Information OPTI ConnectivityOPTI Contacts www.opticonnectivity.com http://opticonnectivity.blogspot.com/ Operational Productivity Tool, Inc. Office Court at Walton Point 482 Norristown Rd, Suite 114 Blue Bell, PA 19422 Phone: 484-351-8305 Proprietary 10 Exclusive Property of Operational Productivity Tool, Inc.

×