Sunday September 05 , 2010

Evaluating Mid-Market Auto Suppliers in Times of Crisis

As the Detroit 3 automotive OEMÂ’s continue to restructure, the impact on the Tier 1 suppliers has become increasingly critical. Multiple articles have been written detailing the plight of these large enterprises. But what about the smaller
firms, the Tier 2 and Tier 3 mid-market companies? What trauma are they experiencing as a result of their shrinking customer base? Of equal importance, how do lending institutions and private equity investors evaluate these firms when familiarity with their product, operations, and human infrastructure is limited?

Beyond the obvious financial criterion, smaller  companies operations can be evaluated on four attributes to truly critique viability. The areas are: human  infrastructure,   sales  pipeline,  processing  excellence,  and  in-bound  and  out-bound  contracts. Successful firms excel in all
four areas.

Human  infrastructure is the leading indicator of success for any mid-market automotive supplier. In 1994, Jim Collins and Jerry Porras wrote the ubiquitous book Built To Last. The authors specifically selected the topic of organizational  design and human resources (human infrastructure) as their leading topic. This selection was no accident; their research  clearly indicated the leading edge relevance of human infrastructure. Similar to virtually all business organizations, the  human infrastructure variable is critical to the operational success of Tier 2 & 3 companies.

Read more: Evaluating Mid-Market Auto Suppliers in Times of Crisis

 

Strategic Alliances

CMM Engineering is proud to announce it has partnered with CKPG & Associates, Houlihan Smith & Company, and RWD Technologies to build strategic alliances. We continue to build relationships to provide our customers with products, distribution channels, manufacturing capability, knowledge, and expertise. If you are interested in becoming a partner contact us today! small business,business turnaround,Small Business Operational Turnaround Advisers,Turnaround Advisers,small business help,small business advocate,organizational management consulting,turnaround companies,manufacturing cost management,turnaround firms,inventory cost management,cost management control,management consulting process,turnaround consultants

 

 

Office Products Producer and Distributor

small business,business turnaround,Small Business Operational Turnaround Advisers,Turnaround Advisers,small business help,small business advocate,organizational management consulting,turnaround companies,manufacturing cost management,turnaround firms,inventory cost management,cost management control,management consulting process,turnaround consultants CMM helps a $55 million Office Products producer and distributor return to profitability
  • CMM Engineering led the lean transformation of this firm with the goal of returning the company to profitability. 
  • Restructured plant operations to implement 5 S lean techniques, greatly improving inventory turns while right sizing the organization. 
  • Introduced a material control system and warehousing techniques to improve JIT deliveries.
  • Worked with the lending institution to rework the covenants, expand the lending line, and acquire increased working capital.
   

Juice Packaging Company

CMM assists a $48 million contract juice packaging company in getting back on track
  • CMM Engineering performed a comprehensive assessment of the manufacturing operations, financial position, operational structure, leadership and team members.  
  • Mapped processes, suggested inventory turn improvements, peformed analysis of product lines, and improved quality in the manufacturing facility.
  • Supplied a detailed report for executive management and ownership. 
 small business,business turnaround,Small Business Operational Turnaround Advisers,Turnaround Advisers,small business help,small business advocate,organizational management consulting,turnaround companies,manufacturing cost management,turnaround firms,inventory cost management,cost management control,management consulting process,turnaround consultants
 

OTC Medicine and Candy Producer

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CMM leads turnaround of a $17 million over the counter medicine and candy producer

  • CMM Engineering led the lean tranformation of this 80 year old firm with the goal of returning the company to profitability.
  • Restructured plant operations to consolidate operations - reducing direct and indirect labor by 14%
  • Introduced a material control system by creating a Plan For Every Part (PFEP) increasing inventory turns four fold.
  • Incorporated “milk run” logistics system to reduce overall transportation cost of direct and indirect materials.
     
   

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