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Finding and Mining Value Hidden in Operations - The ProAction Group


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In this set of slides, you'll find an overview of ProAction's role, values, a few case studies covering diligence through exit, as well as several team member bios.

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Finding and Mining Value Hidden in Operations - The ProAction Group

  1. 1. Finding and Mining Value Hidden in Operations 6/01/2017 The Competition is Fierce. Change the Rules.™
  2. 2. Table of Contents  ProAction Overview and Role  ProAction Values  Case Studies  Team Bios 2
  3. 3. 3 Company Overview  The ProAction Group serves consumer products, manufacturing and distribution companies.  Our clients recognize the need to improve EBITDA, Working Capital, Competitive Positioning and Organizational Effectiveness by adding an increased focus on operational excellence.  We act as a resource extension to owners and management teams. We provide operational expertise, resources, and tools to help maximize performance.  What makes us distinctive is that we get measurable and sustainable results. We identify and quantify opportunities, then turn them into reality. We have a relentless drive to help our clients build winning companies. Core Capabilities: Manufacturing Operations • Lean enterprise / Lean manufacturing • Outsourcing / asset rationalization • Quality systems and process • Inventory and materials management • Value Engineering Supply Chain Operations • Sales & operations planning (S&OP) • Strategy development • Supplier development • Asia / global • Logistics (freight, warehousing and planning) Sales Operations • Pricing strategies, processes and disciplines • Customer and product profitability • Channel strategies and management • Product development process
  4. 4. 4 Assessment Phase • Identify and Quantify Opportunities to Increase EBITDA, Improve Competitive Position and Reduce Working Capital. • Identify and Quantify opportunities in the operations and management processes. Preparation of 100 Day Strategy Implementation of Strategy Ensuring Sustainability • Participate in Strategic Planning Process. • Facilitate management process to develop supply chain, manufacturing, distribution, quality and/or sourcing strategies / project plans as needed. • Lead the management team through stabilizing the business operations (as needed) and through realizing the future state. • Implement specific projects and processes requested by management / ownership. • Help the company institutionalize the habit of improving. • Transition to a coaching / monitoring role. • Support specific initiatives as appropriate. • Help prepare the company for financial events. Stage 1 Assess- ment Stage 2 Planning Stage 3 Execute Stage 4 Sustain ProAction’s Role in each stage
  5. 5. 5 Manufacturing • Lean – Factory & Front Office • Sales and Operations Planning • Customer, Product and Employee Onboarding • Global Sourcing • Inventory, Pricing and SKU Strategy • Quality Systems & Order Fulfillment • Scalability • New Product Development / VAVE • CIP / Problem Solving Healthcare • Lean – Patient Care • Lean – Registration and Collection • Lean – Front Office • Global Sourcing & Freight • Metrics Development • CIP / Problem Solving Business Services / Energy • Lean – Service Delivery • Lean – Front Office / Admin • Metrics Development • CIP / Problem Solving • Logistics / Routing • Inventory Management Distribution • Lean – Picking, Put-away, Slotting • Inventory Strategy, Control & Management • Lead time reduction • Network Design and Consolidation • CIP / Problem Solving • Logistics and Routing Relevance by Sector
  6. 6. Core Values • Principled – Do the right thing – Do what we say – Do it well, thoughtfully • Passionate – A Real Fire in the Belly – A Bias for Action – For Continuous Improvement – For Excellence • Help First – Provide value before we get value – Givers not Takers • Humbly Confident – Listen first, then listen again – Competent, Not Arrogant These values describe The ProAction Group Culture and each member of our team.
  7. 7. Our Values Applied to Client Engagements 1. Accurately identify and communicate the right recommendations for our client needs (this speaks to our competence, experience, education, diligence/ assessment processes and integrity) 2. Help the client come to understand and embrace the right recommendations to realize their vision (this speaks to our effective quantification of opportunities, persuasiveness and demeanor with the client) 3. Lay the foundation to enact the change / improvement and actually help the client realize and sustain the future vision (this speaks to our change management techniques, aggressive and designed implementation approach and execution, graciousness, relationship development) 4. Efficiently run projects (this speaks to managing budgets, recruiting excellent candidates, pricing right, developing an effective onboarding process and working well with the client). Note: These are listed in priority order
  8. 8. Case Studies: Assessment to Implementation
  9. 9. Case Study: Packaging Company 9 Assessment • Identified ~$1 million in EBITDA improvements. • Documented the savings, communicated with investment committee and financing partners. • Information helped the PE firm better assess investment opportunity and develop a strategic plan. Preparation of 100 Day Strategy Implementation of Strategy Ensuring Sustainability • Participated in Strategic Planning Process. • Facilitated management process to develop manufacturing and sourcing strategies / project plans. • Led management and personnel through lean implementation and global sourcing efforts. • Realized nearly $2 million in annual EBITDA gains. • Increased customer service levels. • Operating Capacity increased by over 20%. • Company is now leading the efforts on their own. • Realized ~$1 million of saving from additional lean and global sourcing projects. Pre- Close At Close Year 1 Year 1 & 2
  10. 10. Case Study: Distribution Company 10 Assessment • Identified ~$2.7 million in EBITDA and $6.5 million in working capital improvements. • Identified opportunities to increase order fulfillment levels from mid 80’s to over 95%. • Documented opportunities to consolidate facilities and reduce square feet utilized by over 250,000 sq ft. Preparation of 100 Day Strategy Implementation of Strategy Ensuring Sustainability • Led the management team through prioritizing improvements to realize the future state. • Developed a full 6 month implementation plan and timeline with management. • Led management and personnel through inventory planning, lean implementation and sales and operations planning (S&OP) efforts. • Within 6 Months: • Realized over $3 million in annual EBITDA gains. • Increased customer service levels to over 97%. • Inventory turns increased from 3.8 to 4.3. • Company is now leading the efforts on their own. • EBITDA gains will surpass $5.3 million annually. Pre- Close At Close Months 1 - 6 Months 7 - 12
  11. 11. Case Study: Heavy Equipment Manufacturer 11 Assessment • Identified the means for the company to increase EBITDA margins from 32% to 36%. Specifically, we identified the opportunity to: • Consolidate facilities through lean manufacturing processes. • Reduce product cost and increase manufacturability and quality through value added engineering processes. • Reduce scrap, back orders, expediting costs and lost sales during new product roll outs (PPAP processes). Preparation of 100 Day Strategy Implementation of Strategy Ensuring Sustainability • Led the management team through prioritizing improvements to realize the future state. • Implemented Lean and Quality improvements that led to: • 14% reduction in labor costs, 25% reduction in floor space utilized. • Implemented single piece flow • An increase in EBITDA from 32% to 36%. • Dramatic reductions in delays, scrap and rework costs linked to new product roll outs. • One on one coaching and mentoring for plant managers led to continuing improvements after our project completed. • Company is now leading the efforts on their own. Pre- Close At Close Year 1 & 2 Year 2 & 3
  12. 12. Select Team Bios 12
  13. 13. Dave Anderson Dave Anderson is a co-founder of The ProAction Group. Dave specializes in supply chain operations, with an emphasis in sourcing, logistics, cost accounting, and process reengineering. In this role, Dave has led clients through numerous engagements to assess operations, identify opportunities for improvement, and implement changes. Dave also served as the general manager for a client, responsible for strategy, sales, marketing, finance, and operations of an internet group purchasing organization. Dave helped create this business and led it to profitability. Dave has experience in manufacturing, distribution, and service industries. Prior to forming The ProAction Group, Dave spent eight years in operational consulting, including developing Arthur Andersen’s methodology and software tools for activity based costing. Dave is involved in a number of industry groups, and has spoken on supply chain management principles at the national conference level. Dave has a BS in Business Administration and Accounting and an MBA from the University of Kansas. 13
  14. 14. Frank Atha Frank has over thirty years of broad Supply Chain and Manufacturing Operational experience in Automotive, Capital Equipment, Electronics and Consumer Products. He has held a number of significant leadership roles at Honda, Case New Holland and Nortek. He consistently drives improvement and change through the use Lean Tools focusing on the fundamentals of Quality, Cost, Delivery and Speed to Market. His expertise includes Strategic Sourcing, Procurement, Planning - Demand and Supply, Manufacturing Operations, Logistics and Distribution in Multi-National organizations. While at Nortek, Frank introduced and implemented S&OP to the Home Technology Division resulting in a 29% or $14 million, inventory reduction while maintaining a customer service level of 98.5%. In the Home Technology Division of Nortek, Frank enhanced the logistics model from a single site to a bimodal distribution, resulting in reduced factory to customer cycle time by 30%, with half a month reduction in working capital, $7.8 million. Frank holds a BA in Accounting and Economics, and a MBA, both from Saint Ambrose University. 14
  15. 15. Greg Bashford Greg Bashford has over 25 years of Lean Manufacturing experience using the Toyota Production System in training, product development, just in time, standard work, SMED, Kanban and manufacturing. Prior to joining The ProAction Group, Greg worked for Lexington Metal Systems as the General Manager. Greg's responsibilities at Lexington Metals System were working with the Sales Department on forecasting and New Products and with Engineering on New Product launches. Also Greg worked with Manufacturing on producing product in a Just-In-Time environment using the Lean Manufacturing tools from the Toyota Production System and with Finance (Controller) on all plant budgets. Greg also trained his staff at Lexington Metals on the Toyota Production System and managed continuous improvement throughout the system. Greg and his staff also moved 4 manufacturing locations into one location. Greg has trained manufacturing facilities in Lean Manufacturing Process tools for continuous improvement like Delco Engine Re-Manufacturing, Morey's Seafood, Ford and others. Some of the Lean tools he implemented were Kanban, 5S, Quick Changeover, Block scheduling, Standard Work, One Piece Flow, Error Proofing, and Sales and Operation Planning. Greg's additional Lean Manufacturing experience comes from Metalforming Technologies Inc., Lean Manufacturing Consulting, RWD Technologies Inc., and Johnson Controls, Inc. 15
  16. 16. Doug Blanchard Doug Blanchard is the Managing Director of The ProAction Group. He is responsible for client projects, recruitment and development of consultants, and serving clients directly. Doug Blanchard is an experienced executive with over 30 years of progressive management experience. Doug has applied his leadership skills and experience on numerous client engagements in various areas of business operations, including all aspects of lean enterprise management, business and operations strategy, sales and operations planning, quality systems, new product development, cultural change and organizational development. Additionally, Doug has been a leader in acquisition due diligence assessments and the development of value creation strategies for the M&A segment of our business. Prior to joining The ProAction Group, Doug worked for Lexington Home Brands as COO/Executive Vice President of Operations, where he was responsible for a $450 million division with 15 plant locations. Prior to that, Doug worked for Emerson Electric, where he had P&L responsibility for a $300 million division. Doug also has experience at Darling Store Fixtures, Tenneco Automotive, and Goodyear Tire and Rubber. Doug has a BS in Industrial Engineering and Management from the University of Akron. 16
  17. 17. Moir Donelson Moir P. Donelson is a results-oriented, global executive, with over 20 years' experience in leadership, operations, marketing, strategy, acquisition analysis and integration, and planning. Before joining The ProAction Group, Moir served as President of the Americas Division of Devro, Inc., the world's premier collagen casing manufacturer, overseeing North and South America for the $100 MM, 420-person business. Prior to joining Devro, Moir served as Plant Manager of Kraft Foods, Inc., Oscar Mayer Madison Plant, where he was responsible for ~1100 employees and the manufacturing processes for Hot Dogs and Cold Cuts that generated ~$400MM in revenue. Moir was also Vice President of Business Planning for Olin Corporation's Winchester Ammunition Division, where he was responsible for leading the division's and corporate strategic initiatives, investor communications, and planning processes. While Vice President & General Manager of Excel Extrusions Inc., Moir was primarily responsible for developing and deploying business and marketing strategies globally based on customers' needs. Before his time as a management consultant at Bain & Company, Moir completed production and engineering assignments for Motorola, Inc. and was recognized as their Six Sigma Quality Control Champion Award for raising output on the final test floor by over 330% with no capital investment, and the Yield Awards for achieving record yields on silicon wafer product lines, generating an incremental $44mm in revenue and $5mm in cost savings. Moir served in U.S. Army Field Artillery units in Ft. Polk, Louisiana and Ft. Hood, Texas as fire support officer, fire direction officer, executive officer, and acting commander from 1990 until 1994. He graduated from West Point in 1990 with a Bachelor of Science in Electrical Engineering and received his MBA from Harvard Business School in 1999. 17
  18. 18. Perry Hall Perry has more than twenty-five years experience in lean manufacturing working with clients and their endeavors to implement Lean Manufacturing He has 12 years of Lean experience from Toyota Manufacturing. He has developed extensive training materials and delivered the training on the production floor through consulting and coaching companies such as SME, Caterpillar, GM Power train, Ford, Dana/Spicer Axel, Siegel - Robert, Intuitive Surgical, Nike, Harley-Davidson, Bose, Turner Power Systems, and the U.S. Air Force. Prior the joining The ProAction Group, Perry became a program manager focusing on the Ford Production System, working with Ford Power train Lima Ohio and Cleveland Engine and the Shingo Prize effort. He was also a lean engineer for GM Power train, responsible for implementing lean in the 22 North America power train plants. Perry is also a contributing author in Lean Manufacturing: A Plant Floor Guide published by SME. 18
  19. 19. Greg Hayward Greg is an accomplished business leader who increases revenues, cost savings and earnings with over 30 years of experience in the manufacturing industry including plastics injection molding, metal stamping, machining, electronics, assembly, and product packaging. Greg is a hands-on leader with a proven track record of driving heightened and improved organization productivity and performance at all levels of the business. Greg’s consulting career began in 2011 after working in industry for nearly 30 years. Greg’s focus has been to apply the principles he learned during his career at ITW to middle market companies. Greg began his career and rose to the GM role at ITW. During his time at ITW, Greg had full P&L responsibility including financial planning/accounting, sales/marketing, distribution and direct channels, manufacturing, R&D/engineering, new product development and team building/talent development. Greg received his MBA, Strategic Management & Marketing Concentration from the University of Illinois at Chicago and his BS in Industrial Technology & Economics from Illinois State University in Normal, Illinois. 19
  20. 20. Carolyn Henson Carolyn Henson is an accomplished professional focusing on standard of work documentation, value stream mapping, and conducting inventory and operational analysis for clients. She has experience conducting and analyzing benchmark reports and guiding companies through the request for proposal process. Carolyn has worked closely with several companies in the health and medical industry and other sectors streamlining and documenting the procedures necessary to complete day-to-day work. Her detailed and organized approach to documenting standard work has helped streamline processes of billing, customer service, shipping, maintenance, and other departments. These clients have seen an increase in efficiencies, a decrease in errors, and possess detailed training materials. Her role in value stream mapping events has allowed companies to better understand their processes, visualize their goals, and create detailed plans towards a tangible future state. These events have resulted in clients reducing their non-value added time and increasing productivity on the floor and in the office. Carolyn's attention to detail and ability to dissect data has been instrumental when conducting inventory and customer segmentations. Carolyn has a BS in Communication Studies with Magna Cum Laude honors from Illinois State University. She is certified in Business and Administrative Communication and Human Resource Management. 20
  21. 21. Sheila Healy As a Lean Six Sigma Black Belt Business Executive, Sheila has applied Lean Six Sigma principles to improve business processes in manufacturing, product development, Sales & Operations Planning, customer services, supply chain and “order-to-cash” environments. Sheila has been successful integrating customer requirements into the manufacturing and operational processes to improve customer satisfaction/retention and to generate business growth. Prior to joining ProAction, Sheila has worked in various business units at Alcoa, Sonoco Products and AM International. She has implemented Lean Daily Management and Visual Management to Customer order flows, resulting in a reduction of expedited orders, improved operating efficiencies and reduced freight expenses. She designed and implemented a “Rapid Response” process to address customer emergency demand requirements, production planning and monitoring of the execution of the plans in meeting customer expectations. Sheila was able to reduce customer credits by 18% by utilizing Kaizen techniques to resolve problems impacting both customers and operations. Sheila has also had international roles in Puerto Rico , Northern Ireland, Mexico, Singapore, and Malaysia. She has a Master’s of Business Operational Excellence & Lean Six Sigma Black Belt from Ohio State University and a B.A. Spanish & Certificate of International Business from University of Cincinnati. 21
  22. 22. Mike Lemon Michael Lemon is an experienced professional with a focused background on profitability improvement and global competitiveness. His background includes over 30 years of experience in the areas of International sourcing and manufacturing management for Fortune 500 corporations. Prior to working with ProAction Mike, as V.P. Global Supply Chain, was responsible for growing the offshore sourcing environment at Lexington Furniture Industries from $15mm/year to $50mm/year while favorably restructuring offshore financial agreements with the supply base. In this role Mike had total responsibility for Domestic and International Purchasing, Warehousing, Distribution, Master Scheduling, and Planning. As a plant Manager with Henredon Furniture Mike had P&L responsibility for a vertically integrated plant and successfully increased production by 57% while reducing staff levels by 23% (without a layoff), and Inventories by 35%. Over the past 12 years Mike has aided ProAction with numerous projects both in Central America and the United States. These included Kanban development and implementation, Warehousing, Manufacturing efficiencies, Shop Floor and Production Control development, and international logistics projects. Mike is degreed in communications from the University of Bridgeport. He also studied International Business at Norwalk Community College and Physics at NY Institute of Technology. He was awarded certification at the Fellow level by APICS in 1986 and has been a featured presenter at several APICS International Symposiums. He has published 13 papers on various management subjects and was nominated for the Shingo award of Excellence in 1995 for a white paper on his accomplishments at Henredon Furniture. Mike also taught Capacity Planning, Shop Floor Control, Materials Requirements Planning, Just- in-Time Manufacturing, and Inventory Management internally at Pitney Bowes, externally at Catawba Community College and at the American Production and Inventory Control Society headquarters in Pittsburgh. 22
  23. 23. Mark Sebby Mark has more than 20 years of experience in leading Quality and Lean improvement initiatives and implementing quality management systems within manufacturing organizations. As a certified Six Sigma Black Belt and expert in Quality Improvement who utilizes Lean, Six Sigma, and other Continuous Improvement methodologies, Mark has successfully led, taught and mentored project teams for multiple companies to achieve desired quality improvement, productivity improvement, and cost-savings goals. Mark has also guided companies in creating and implementing quality management systems, including certifications to ISO9000 and TS16947. Before joining The ProAction Group, Mark has defined and led numerous process improvement projects and has performed Lean training. Utilizing tools such as DOE, VSM, TOC, and advanced statistical analysis, effective action plans were developed and implemented to improve yield, reduce material usage and reduced waste that included inspection and rework activities. Mark has also led Lean initiatives including Kaizen events, Quick Changeovers, Cellular Manufacturing, Standard Work, and Downtime Reduction to improve overall productivity and yield. Mark's prior career experience includes positions in Quality Management and Engineering (Supplier, Process and/or Customer), and as a Six Sigma Black Belt, in Tier 1 and Tier 2 companies in the automotive industry, including ARC Automotive, Lear Corporation, and Matsushita Electronics Corporation (Panasonic). Mark has also performed key roles in the start-up of multiple facilities, validating new processes and products, negotiating customer agreements and obtaining customer approvals prior to product launch. Mark has an MBA from The University of Tennessee, a B.S. in Business and is working towards his Ph.D. in Natural Resource Economics. 23
  24. 24. Tim Van Mieghem Tim Van Mieghem, a co-founder of The ProAction Group, implements projects and delivers services that result in improved clients' operations. Tim specializes in achieving the dual goals of obtaining specific results, whether reducing costs or enhancing services, and training the client to continue the process. Tim has designed and implemented innovative ways for clients to manage the costs, benefits, and risks of purchased goods and services, logistics, and inventory management and control. These projects include helping clients develop international sourcing organizations and strategies; design distribution networks; negotiate long term alliances with suppliers, carriers, and customers; reengineer logistics and order flow processes; and implement quality and lean manufacturing systems. Tim is active in promoting supply chain management techniques. His book, Implementing Supplier Partnerships, from Prentice Hall, is the leading text on creating and maintaining world-class supplier agreements. In addition, Tim has published many articles and presented speeches on Sourcing, Logistics, and International Distribution. Tim focuses on the benefits of trust and commitment within the supply chain, the benefits of sharing information with partners and employees, as well as on effective techniques to achieve specific operational goals. Tim has a BS in Accounting from Marquette University and is a Certified Public Accountant. 24
  25. 25. Kathy Wishnew • Kathy Wishnew leads the development of ProAction’s 9-Box tool and implementation. Kathy is a dynamic and intuitive global business operations leader with extensive experience in process improvement, program management, quality assurance, Six Sigma, lean manufacturing, and goal deployment. She has helped organizations achieve bottom-line performance improvements through the alignment of strategy, systems, processes and people. • As a consultant, Kathy has helped companies achieve margin enhancement, cost reduction, productivity improvement and risk reduction by focusing on process reengineering, scoreboard development and deployment, leadership development and quality management. While Vice President at Jarden Safety & Security, Kathy established a Continuous Improvement Program, resulting in a cost reduction of $8.9M in the first year. She focused on creating transparency and linkage to Strategic Plan initiatives, which led to a record number of new product launches and centralized their quality management system. Her work led to a 360 view of product records and an improved rapid response to customer concerns from years to 2 weeks. As Executive Director of Global Business Process Optimization at Panduit Corporation, Kathy paved the way for achieving record-level Six Sigma cost savings of $3M in manufacturing and business office improvements. • Kathy has a Bachelors Degree in Industrial Systems Engineering from The Ohio State University where she was inducted in to the Alpha Pi Mu Industrial Engineering Honor Society. Kathy is certified as a Six Sigma Black Belt, ASQ Quality Engineer, Lean Leader, Shainin Red X Problem-Solver; and holds numerous FranklinCovey facilitator certifications including the following: Great Leaders, Great Teams, Great Results; 4 Disciplines of Execution; and the 7 Habits of Highly Effective People.
  26. 26. Realizing Value Hidden in Operations Tim Van Mieghem The ProAction Group (312) 371-8323