This wood manufacturing plant lost its entire Asian market overnight due to a price collapse. A third of the workforce had to be laid off. The Board of Directors gave the Plant six months to finish the year at break even, otherwise they would close the plant down. The workforce, some with only an 8th grade education, had to become more profitable in all that they produced in a short time frame.
- Business acumen coaching for front line in terms they understood
- Introduction of new KPIs at front line level
- Profit driver analysis to ensure every action was tied to profitability
- Implemented business meeting structure implemented that included the workforce
- Daily performance focus introduced on the shop floor
- Continuous improvement channels created
The Plant finished at 250k USD above break even. ROI 5:1
The only path for survival and sustainability was to change the traditional command and control model. Everyone at all levels had to work together for a common goal. The experience changed this operation forever and they never went back to the disconnected silos and unrealized potential previously present.