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Restructuring after carve out of a special machinery division from an automotive supplier

The client organization was very successful over many years in growth, profitability, recruiting talents and customer acquisition. The operative carve out from an automotive supplier during the past 2 years was a comprehensive transformation challenge. This in addition to daily, ordinary business obligations was exceeding the client's management capacity. In consequence, customer satisfaction was deteriorating, order income declining, contract projects were overrunning and performance centers decreasing their productivity. Higher wages from negotiations with labour representatives increased the problem in compoarative costing.. 

dp analyszed within only 6 weeks together with a client team the root causes. Interviews combined with functional analysis were conducted and thereby simultaneously the organization mobilized. Cost centers, cost categories and cost pools were analyzed by benchmarks and timeline comparison. Within workshops, the necessary improvement levers were commonly developed. The resulting restructuring concept covered the comprehensive redesign of the order2cash cycle with quality, cost and productivity targets, the execution of procurement and cost control measures and the reduction of labour costs for sustainable recovery and competitiveness.