garry north introduction march 2016 ppt
TRANSCRIPT
Introducing Garry North
March 2016
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Garry North - Introduction
Introduction
Garry is a very experienced business improvement professional, interim management executive and is a qualified Mechanical Engineer. He has extensive experience in management with companies as a line manager, management consultant and interim executive. His work has been across a broad sector of industries and he has also lived and worked in Europe, Central Europe, North America and The Middle East.
Profile
A highly experienced Management Executive who is a trusted advisor and has demonstrated the ability to lead diverse teams of professionals in different geographies to new levels of success in a variety of industries and business situations. Strong technical and business improvement skills and experience with an impressive track record of hands-on business improvements.
Key Skills & Expertise:Business Restructuring and Transformation Business Turnaround Change Management Continuous Improvement Interim Management Lean Manufacturing Mechanical Engineering Mergers & Acquisitions Operational Excellence Quality Management People Management Performance Improvement Programme & Project Management Supply Chain Management
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Summary of Recent Achievements 1
Interim Managing Director involved in the planning and implementing a post acquisition and integration of a group of manufacturing businesses to creating a new Group in Marine Safety. My role was to develop the strategy and manage the operations of this bespoke manufacturing business on a day-to-day basis and to plan and implement business integration programme over a 6 month period
Interim Operations Director (Operational Excellence Programme) engaged to deliver an extensive operational, production and supply chain continuous improvement programme for a bespoke manufacturing business. This extensive programme required working at both Board level and, with the production operatives and team leaders. Staff, supervisors, managers and suppliers were fully engaged and through the collaborative and inclusive approach adopted within 9 months production schedule adherence has risen from 42% to 100%, end of line on time in full pass rate had gone from 38% to over 96% and manpower efficiencies have yielded over £900k of savings.
Interim COO implementing a business turnaround and business improvement programme for an international manufacturer of Sub- Sea Remote Intervention Equipment & Control Systems. The business has a strong and unique heritage in subsea engineering, today it has grown to be the world's number one independent designer and manufacturer of work-class and specialist subsea remotely operated vehicles (ROVs). The operational benefits delivered a 15% EBITDA business and the opportunity to consider an exit for the investors.
Interim CEO working in the Middle East planning and implementing the turnaround of a consumer goods business and creating a new manufacturing factory. The business was an integrated marble producer and one of Middle East’s leading marble exporters. The plans included increasing internal quarrying capacity and complete a new state of the art marble processing plant to increase the company’s finished product capacity, and substantially improve profit margins and returns to the PE shareholders.
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Summary of Recent Achievements 2
Interim COO for a Swedish automotive parts manufacturer involving business turnaround including process, operational and organisational improvements. Benefits included 25% cost reduction, improvements operational planning and control, leading to 30% reduction in inventory. Transfer of some production to lower cost countries. Provider the PE investor the ability to successfully exit the business.
Interim COO implementing a business improvement programme an international oil field engineering manufacturer of oil production sub- Sea control systems. Benefits included a 30% increase in production output, improvement in on time delivery by 70%. Improvements in the supply chain management in planning, procurement and supplier performance. Subsequently the PE investor exited the businesses.
Advisor for an International provider of oil well intervention services business based in Denmark. The turnaround plan and implementation plan was to move to being a full service provider and to sell Oil Well Intervention solutions and value propositions based on profitable outcomes for the customer. The benefits of this programme were a 30% increase in sales and revenue over a six-month period. It also improved the cash flow and profitability of this privately owned business
Programme Director for an operational improvement project for a FMCG company in Central Europe. The key implementation activities were focused on 9 packaging lines and included downtime reduction, changeover improvement and creating new standard operating procedures. The project delivered a 4% increase in manufacturing efficiency, 30% reduction in non-value adding activity and a 10% reduction in clean down.
Programme Director of a supply chain project for a global beverages company in Europe including developing the SCM strategy and implementation for the consolidation and rationalisation of production, warehouses and logistics to improve customer service
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Key Skills & Expertise
Operations Management
Implementing World Class Manufacturing
Business Turnaround Continuous Improvement
Interim Management
Lean Manufacturing
Mechanical Engineering
Mergers & Acquisitions
Operational Excellence
Quality Management
People Management
Performance Improvement
Programme & Project Management Supply Chain Management and Procurement Business & Operational Strategic Planning Business Restructuring Transformation Change Management Organisational Effectiveness Strategy Development New Factory Establishment and Relocation Project Planning and Implementation
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Background International manufacturer of Marine safety Equipment New Group of companies brought together and integration
to leverage value Role Interim Managing Director involved in the planning
and implementing a post acquisition integration programme
Interim Managing Director – Post Acquisition Integration Programme
Develop the strategic plan and manage the operations of this bespoke manufacturing business on a day-to-day basis and implement business integration programme which included:-Improve sales forward order cover and strengthen sales pipeline Integrate and recruit Sales team and focus on a sales improvement programme Consolidate factories into one location with productivity improvements £500k benefitsReduction in material spend with key suppliers delivered £200k benefitsNew Product development projects initiated and improve speed to market New products for competitive Value for Money (VFM) Leisure Products introducedOffshore manufacturing to lower cost countries to deliver greater profitabilityOperational Excellence improve cost, quality and deliveryImprovements in management controls and effectiveness including KPI’s
Approach & Results
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Background International manufacturer of Holiday Homes based
in the UK Weak operational performance in terms of on time
delivery, productivity, quality and working capital issues
Interim Operations Director – Operational Excellence Programme
Establish Operational Excellence Core Team created to facilitate/coordinate the programme
Create Teams and conduct workshops – Use of Total Quality/Kaizen/TPS Tools and Techniques Teams empowered to implement improvements business wide
Approx 600 Actions identified and 450 Actions implemented in 9 months
Regular Team Review Meetings to follow up and define new actions
Monitoring via visual Action Log & KPI’s (Shared for all Team Members)
This extensive programme required working at both Board level and, with the production operatives and team leaders. Staff, supervisors, managers and suppliers were fully engaged
Approach
Results
Over a nine month period operational performance was improvedProduction schedule adherence has risen from 42% to 100%, End of line on time in full pass rate had gone from 38% to over 96% Manpower efficiencies have yielded over £900k of savings.
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Background
International manufacturer of oil production sub sea Trenching and ROVs and control systems
High growth in sales of machines against a background of poor operational performance and prepare business for exit.
Interim COO - Business Turnaround & Improvement Programme
Manage and review the operations and develop a business turnaround and improvement plan involving Engineering, Supply Chain Management, Project Management and Production
Work with management to restructure the organisation and create change to improve operational effectiveness
Approach
Results
Improve Cash flow for year end through completion of late projects.
Restructure the organisation and create improved effectiveness between Engineering Procurement and Production
Develop a new SCM Organisation restructured to improve planning and procurement and create a plan to reduce material spend by £3m
Deliver an improvement plan of £1m OPEX including site consolidation
Deliver a 15% EBITDA performance
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Interim CEO - Business Turnaround & Improvement Programme
The business was an integrated marble producer based in Egypt EBITDA targets were being missed and the P.E. owners required
assistance Business had a history of missing targets and failing to
implement improvements The company was creating a new manufacturing facility but had
got into difficulty
Situation
Actions Taken
Results
As Interim CEO create a business turnaround plan to improve cash flow and profitability Develop Target Business Case & Consolidation Budget (P&L & Cash Flow) Define business strategy & organisation, including factory consolidation and
restructuring costs, benefits and risks Complete implementation of a new Manufacturing facility at Badr near Cairo and close old
manufacturing sites
The company was to successfully complete a turnaround in performance despite the local political issues and riots of the Arab Spring.
The new manufacturing facility enabled increased capacity with greater effectiveness and improvements to productivity, lead time, quality, profit margins and returns to shareholders.
Working capital was improved through the reduction in slow moving stock and faster production rates and therefore stock turns.
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Interim COO – Business Turnaround & Operational Improvement
Situation Tier 1 automotive supplier based in Sweden facing flat volumes and intense cost pressure
EBITDA targets were being missed and a forecast of negative EBITDA for the year
Business had a history over several years of missing targets and failing to implement improvements
Situation was exacerbated by a recent acquisition ‘swinging the spotlight’ onto cash in an operating environment where inventory was increasing rapidly
The company was in the process of transferring production to lower-cost ‘brown field’ sites in Slovakia and Turkey.
Actions Taken Results Conducted three-week Quick Strike diagnostic to define key improvement opportunities and potential benefits
Launched improvement programme focused on Lean Manufacturing (including inventory reduction), purchasing strategic sourcing and project management of volume transfers
In manufacturing, implemented shop floor-driven Lean Manufacturing programme focused on material flows and layout, direct labour productivity, short-interval scheduling, production planning and control, and inventory management
Programme managed volume transfers and tool moves to Slovakia and Turkey
Reduction in direct and indirect labour costs have been reduced by 25% and 28% respectively.
Inventory reduction by 30% by year end through elimination of slow movers and obsolete stock, improved planning and control and implementation of production ‘pull’ systems (Kanban)
Volume transfer projects on-track and first transfers were completed and moved to Slovakia
Negative EBITDA forecasts have been revised to substantially positive and the business is now on track to realising all of its targets.
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Business Advisor - Business Improvement ProgrammeRevenue Generation And Business Growth
International manufacturer and services provider of oil well intervention services based in Denmark
Young privately owned business with innovative technology and high growth potential. Seeking to reorganise business and focus on high growth sales and revenue generation through improving sales and revenue generation processes organisation and systems
Revenue Generation & Growth Initiatives1. Lead And Sales Pipeline Management & CRM 2. Performance Metrics, KPI’s & Management and Reporting3. Key Account Management & Planning4. Sales And Marketing Re-Organisation5. Sales Force Capabilities And Effectiveness (Training)
Demand Fulfilment & Revenue Enhancement Initiatives6. Increase Revenue Through Improved Quality Of Service
Delivery 7. Asset Management, Visibility, Tracking &Supply Chain
Optimisation8. Sales and Operations Planning (Visibility of Demand &
Fulfilment Plans)9. Improve Supply Chain Management and service delivery10. Establish Global Solution Centres
Approach Rapid opportunity assessment of
situation Focus on ‘Quick Wins’ and action
plans Created teams focussed on business
outcomes Broke functional silos to build
process teams Re-Organisation of Management Team Improved Management Control and
Reporting Improvement in Business Processes. Implemented new CRM systems Created new Solution Centres EU,
NAM &AP
The new Sales Business Process & CRM systems were implemented with Key Account planning plus the re-organisation started the growth program moving for 8% to 25 to 30% sales and revenue growth on prior year. Improvement from the demand fulfilment also contributed to a reduction in revenue erosion and EBITDA performance was maintained.
Results
Situation
Improvement Programme Initiatives
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Interim COO - Business Improvement Programmme & Preparation for Exit
International manufacturer of oil production sub sea control systems High growth in demand of products against a background of poor
production performance and working capital issues inherited post acquisition. Prepare business for acquisition.
Manage and review the manufacturing operations and develop the most appropriate interface between the Manufacturing, Supply Chain Management, Projects and Engineering Departments.
Work with management to implement the most appropriate business structure and review the manufacturing impact on:-
Cash (specific targets) Work in progress Manufacturing flexibility and Supply Chain Change management and Manufacturing Codes of Practice (COPs)
1. Cash target of €33m has been achieved and €37.5m cash was collected
2. Work in Progress – Production output improvement by 30 % 3. Manufacturing flexibility was improved reflected in improved
production output4. SCM Organisation restructured to improve planning and
procurement5. Supplier on time delivery improved from 70 to 85%. 5. Reduction of suppliers from 1800 to 435 on the Authorised Vendor
List 6. Unallocated stock initiative reduced working capital by €3m.
Results Over 3 Months
Project Scope And Deliverables
Background
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Business Advisor - Profit Improvement & Product Portfolio OptimisationUK’s largest producer of cheese, supplying all major food retailers, food processors and food service organisations. They also manufacture a wide range of dairy products including long life milk and creams, extended shelf life products, flavoured milks and milk powders. The profits generated by the business are returned to farmer Members to help provide a sustainable future for their dairy enterprises.
The Management has steadily grown its business over the years by offering value added products to its customers. In order to make breakthroughs with customers it has increased its offerings, both in terms of products and pack formats. This has been a successful strategy but has meant a rapid increase in bespoke materials, as they have met our customer desires. This has led directly to reduce efficiencies at packing sites and distribution centres which have increased both direct and indirect costs. These costs are perceived as “value drags” on the business.
The Project was to evaluate the “value drags” and implement activity to remove it, whilst retaining the businesses ability to meet the needs of its customers. The project objectives were :
1. Provide cost savings and improve profitability (Client Confidential)
2. Develop future business based off lower cost standard products or, where bespoke, with a clearer, more accurate understanding of the additional costs.
3. To be appreciated by it’s customers as A “Lean” Manufacturer of best value packed products to meet customer needs.
4. A flexible manufacturer providing bespoke solutions at appropriate cost to meet customer desires.
5. To have profit as the focus of decisions at all levels across the business and pprovide an increased Net Milk Return to farmers
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Business Advisor - Production Operations Improvement Project
The project was performed in Warsaw plant manufacturing diary products and involved 9 packaging lines, to be consolidated to 7 – fully utilising two high volume throughput lines. The Overall Equipment Efficiency (OEE) at 76% average (could be improved) and 4+ hours lost per product changeover due to set up and cleaning . Also the Planned maintenance program not thorough reactive rather than preventative
1.Down time reduction Program IntroductionUse Kaizen techniques to Improve Planned Maintenance Service
Create improvement teams to blitz key problems2. Standard Operating Procedures Development & TrainingDevelop standard times and standard processes based upon best practice
Cross train improved methods from pilot
3. SMED Introduction - Change over time reductionEliminating waste and externalise some activities
Standardise the process
Background
4% increase in manufacturing efficiency 30% decrease in the main activity
(flavour change) SOPs and training implemented 10% decrease in the CIP cleaning program Technical cross-training programme
Approach
RESULTS
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Business Advisor - Pan European Business Improvement
The business is one of Europe’s largest suppliers and market leaders in flexible packaging. The operating environment had continued to deteriorate. The business had substantially underperformed the market over the last two and a half years,
Assess Strategic Options and Define Manufacturing Strategy & Organisation
Analyse Current Footprint in terms of Cost Performance Capacity And Utilisation
Define Factory Consolidation Scenarios and Restructuring Costs
Recommend Footprint & Secure Agreement with senior management
Develop Target Business Case & Consolidation Budget (P&L & Cash Flow) Also Evaluate Risks & Assurance Processes
Develop Integrated Consolidation Work Plans and Communication Plans
Manufacturing Strategy & Organisation Recommended Manufacturing Footprint Business Case and High-level
Implementation Plans Management Alignment Target Manufacturing Footprint &
Performance
Situation
Approach
Deliverables
Business Priorities1. deliver acquisition synergies2. implement market focussed organisation 3. improve underperforming plants4. capacity optimisation and rationalisation
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Business Advisor - Business Turnaround & Exit
Refocused organisation and empowered team Increased Sales TO £ 35 m Breakeven achieved in 12 months Schedule adherence 50 - 70% Ontime delivery 70% Reduction in:- inventory circa £ 2m - lead time 10 -
20% - labour 20% Business exit achieved within 12 months
Refocus the business and management Exit retailing side of the business “Right size” manufacturing Reorganise design Plan for sales growth including Brand development New Customer supply agreements Improve business performance Prepare business for exit
Division of a large UK conglomerate and non core to group Business performance in crisis and could not be sold Business could not be wound up politically damaging Focus was to turnaround and dispose Sales T.O. £ 25 m and making a loss £12m pa Reactive management with excessive inventory and Labour Schedule adherence 5 - 10% Poor customer service
The Challenge The Approach
The Result
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Business Advisor - Pan European Business Improvement
Multinational manufacturer of Precious metals, fine chemicals £475 m TO employing 3500 people 29% decline in Profitability 5% Return on net assets ~ Target 20% Multiple business units across Europe
Senior management right sized Strategic plans established Business units consolidated Reduction in cost base
26% reduction in total costs 34% reduction in people 84% reduction in metal financing costs 50% reduction in lead times
New management control procedures and systems Product range rationalised Central services devolved into business units Centralised European Sales & Distribution centre
Large senior management organisation Lack of clear vision & direction Duplication of facilities and resources Traditional reactive culture Poor customer service levels Inadequate management controls Sales & Marketing fragmented & costly Wide product range with unprofitable lines Large costly centralised services
£3.5m loss to £10m Profit in under 2.5
years
The Situation
The ChallengesThe Results
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Interim CRO - Business Turnaround & ExitTo continue to trade, improving customer service
and profitability while other divisions were sold
Business out of control and in receivership
Reactive management Making a loss Inventory £5m
The Results Schedule adherence 50% Profitability achieved Reorganised into business
units Empowered Team
Reduction in:- inventory £2m lead time 30% indirect labour 40% shortages 70%
Delivery to customer Improved trading Sell off to MBI
Reschedule customer
requirements Restructure to SBU`s Consolidate While collar Controlled purchasing, Reduced suppliers
Stabilised MRP Introduced Management /Productivity
meetings Capacity planning Performance KPI`s
1. Control
2. Stability
3. Improvement
The Approach
The Challenge
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Business Advisor - Business Improvement Project
A single integrated approach to tackle both cash and cost opportunities for the business. A pragmatic and focused approach on the highest impact opportunities ensuring that any trade-offs between cash, cost and customer service were explicit
The Cash work-stream focused on benefits and would be achieved in 12 months ensuring that the programme was cash positive throughout. The objective was for sustainable cash benefits and opportunities which were assessed against a sustainability criteria.
The Cost work-stream focused on actual benefits to be achieved in 12 months.
Highly competitive market for this International Packaging Company across Europe
Volume reduction impact of major customer’s switch out of EPS and the continued pressure squeezing margins.
The Plastics Division in France was chosen to be the ‘pilot’ for this Cost and Cash program. The French business was run as a separate Foam and Flexibles (Film) business. Future business model was be more responsive to customer needs and leverage scale and reduce the cost base
Costs: £5.6m of cost savings, against agreed baseline
Cash: £6.3m of cash, against agreed baseline
Background
Approach
Benefits
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Multinational Electronics Manufacturer made an acquisition of an Electronics manufacturing business in USA
“State of the art” semiconductor package under product development - Customer - Intel seeking US supplier
Manufacture of a new semiconductor package for Intel P6 & P7 microprocessors In house manufacturing not capable of producing new product Acquisition of new Manufacturing capability required
The client invested £250m and the project took 18 months to complete To source, acquire and restructure 3 Electronic manufacturing businesses Develop the new product design and obtain customer approvals Acquisition of “Brownfield” PCB manufacturing business Create new manufacturing facility and develop new production processes Deliver first 1000 pristine parts to six sigma quality within 9 months
The various aspects of assistance for the Client throughout this programme Development of business strategy and acquisition plan Management role as Programme Director and provide project management team Development of Business plans and new operational model Project management of the product technology development Develop and design new production process requirements and implement Project management for creating a new manufacturing facility
Business Advisor - Post Acquisition IntegrationBackground
Solutions
Client Assistance Provided
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Okocim has 4 production locations and a complex distribution network which was not cost effective and restricted the growth of the business. Cost optimisation competed against the need to maintain high customer service levels and a high change in seasonal demand.
A full review and analysis of the supply chain management business processes, cost structures, management systems and organisation including demand and fulfillment planning across production, packaging, distribution and transportation of a large variety of products through wholesale and key account channels. The project solutions included
Okocim of Poland is a subsidiary of Carlsberg one of the worlds leading beer producers.
The recommendations and proposed solutions will absorb
future 8 % business growth and will achieve a 20% reduction in supply chain costs including :-
Production sites reduced from 4 to 3 Packaging sites reduced from 10 to 7 Warehouses sites reduced from 12 to 6
Business Advisor – FMCG Supply Chain Management Improvement Project
• Consolidation of production and packaging plants • Rationalisation, consolidation of distribution warehouses • Improvement in the transportation – new method of serving clients has been presented.• Improvements in the demand and fulfillment planning and advanced planning systems• Centralisation of customer service organisation• Integration of sales demand planning and fulfillment planning business processes
Background
Business Challenge
Benefits
Business Solution
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Enterprise Resource Planning (ERP) Projects
ERP Implementation Project (SAP) – Petro-Chem Industry SABIC is a major a Pertro-Chem company based in the Middle East. The project was for the pilot and global roll out of an ERP system based on SAP R/3. The approach was aimed at creating the client’s own SAP template which providing common core
business processes and a common organisation structure for the various client business units around the world.
ERP Implementation Project (SAP) – High Tech Electronics
Celestica is a world leader in the delivery of innovative electronics manufacturing products and services with revenues of $10 billion employing 40,000 employees in over 40 locations globally.
As the preferred choice of implementation partner for their global roll out of SAP R/3 we have successfully gone live in Italy, UK and Ireland.
The approach for the roll out has been designed on the creation of the clients own SAP template which as two key aims; it provides the common core generic processes for the various client business units and it will allow rapid downstream implementation improving the costs and speed of the project.