presentation to indiana university september 18, 2001 indiana university kelly school of business
TRANSCRIPT
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Today’s Agenda
» Introductions» Consulting Overview» Consulting Environment» Keystone Overview» Small Firm versus Big Firm» Keystone experience in turnaround situations
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Consulting Overview
Business Issues
» Business stops growing
» Profitability is poor
» Specific Problem
» Operational Issues
»Poor Manufacturing throughput
»Inventory Issues
»Other
» Strategy
Our Tools
» Interviews
» Access to client personnel
» Data collection
» Analysis
» Benchmarking
» Strategy
» Focus
» Client team
» Implementation plan
Our clients are seeing a problem once, but we see it many times…
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Consulting Environment
» High intensity and energy» Client result focused» Deadline focused» High expectations» Forefront of new business solutions» Team problem solving» Creative ideas and problem solving emphasis» New clients, new problems, new solutions» Travel / Flexibility expected
The consulting environment is characterized as a high energy, dynamic setting…
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Consulting Environment
» Analyst = Staff Consultant» Associate = Associate» Principal = Manager» Director = Partner
The career path is well defined but less rigid than at a larger firm…
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About Keystone Consulting Group
» Focused on middle market manufacturing and distribution companies
» Keystone’s premise is to offer “Major League” consulting services to the middle market
» Pragmatic vs. theoretical» Highly experienced, un-leveraged teams» “Work with” versus “tell” clients
Keystone is a general management consulting firm based in Chicago and founded in 1991…
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About Keystone Consulting Group
Keystone Clients
11%6%
11%
72%
Manufacturing Distribution Retail Other
Our marketing focus is oriented towards middle market, manufacturing and distribution companies…
…we define middle market as companies with $50M to $1B in sales.
Keystone Clients
33%
27%
18%
22%
>$500M >$100M >$50M <$50M
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Keystone vs. Other Firms
Keystone
» On the job training
» Small project team
» Hands-on: heavy client interaction and dependence
» Regional market focus
» Self-paced career progression
» Work directly with Senior Managers
Larger Firms
» Training program
» Large hierarchical project teams
» Consulting firm team: lower client interaction dependence
» Wider market focus
» “Lock-step” career progression
» Work with division or department management
Differences exist between Keystone and larger firms…
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Analyst Experience
Consumer Product Manufacturer…» Client - $300 MM consumer product
manufacturer in New York - cosmetics division
» Project Team - Director, Senior Associate, Analyst
» Client Problem - Order Fulfillment» Solution
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Analyst roles on this project were...
» Interviews» Concept Development» Data Analysis» Site Visits» Initial Conclusions» Industry Research» Presentation
Analyst Experience
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ISSUES
• Insufficient time to respond to changes
• Errors• Bottleneck
situation• Late in ordering• Missed ordering• Insufficient use
of forecast/poor forecasting
0%10%20%30%40%50%60%70%80%90%
100%
Order Fulfillment
Customer ChangesProduction ExecutionSchedulingComponent Availability
FIXES
• Diligent weekly review• “Real time” info on
missed shipments• Heightened focus on
delivery targets• Scheduling review,
exception report• Promo limits - number
of changes• Limit overrides and
changes to schedule• Prioritize vendors;
review planning needs
Analyst Experience
Why Product Does Not Ship On Time
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Analyst Experience
Automotive Supplier…» Client - $100 MM Tier 1 automotive supplier
specializing in steering linkage systems» Project Team - Director, Analyst» Client Problem - Throughput, Customer
Pressures» Solution - Lean Manufacturing» Results
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Issues » Key customer demanding annual cost
reductions» Initial attempt at Lean production went
nowhere» Belief that better use of MRP system was
the solution» Work force concerned that Lean equals
layoffs» Piece-rate incentive system
Analyst Experience
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Solutions » Implementation of Keystone’s Flow Design
methodology to energize Lean efforts» Implemented a smooth flow of materials to
minimize excess handling and Work-In-Process
» Implemented a raw material kanban system with visual pull scheduling
» Developed an incentive pay system centered around performance to plan, delivery and quality
Analyst Experience
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Results» Benefits began within 6 months of project initiation» Annual cost savings of $850,000 on $33 Million in
sales
How did we get those savings?» Inventory Turns increased by 18.2%» Scrap decreased by 57%» Rework decreased by 92%» Labor $$ Per Unit Produced decreased by 21.2%
Analyst Experience
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Senior Analyst roles on this project were...
» Develop / manage the project plan & budget» Team Facilitator» Training of Team Members & Management» Interviewing» Data Collection and Analysis» Identifying Sources of Problems» Implementing Changes» Presentations to Management» Conceptual Integration with Existing Systems
Analyst Experience
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Contact Us
Please contact us with further questions, or to submit a resume to interview with Keystone
» Sarah Austin - [email protected]
» Brian Stewart-
[email protected]» Joe Zito - [email protected]» Ryan Windy - [email protected]
On Campus Interview
» November 1st