Advanced materials manufacturing

Improving throughput

Background

  • The company was part of a large US-based industrial conglomerate.
  • The organisation manufactures magnetic materials designed for advanced semi-finished materials and parts, generating some €450M in revenue.
  • The company’s focus lies in developing, manufacturing and distributing differentiated, specialised magnetic alloys, materials, and components with exceptional magnetic and physical properties for a wide range of end-markets and applications including automotive systems, electrical installation technology etc.
  • A key part of the factory in Germany, was critical for the profitability of the overall Group.
  • Key trigger was throughput / OEE.
  •  

Business Relationship

  • The company was acquired Private Equity at the end of 2015. The company went private as a result of the transaction (formerly NYSE listed).
  • JENTS International initiated & conducted this opportunity in collaboration with a US-based partner who had a long-term relationship with the conglomerate’s new CEO but no presence/coverage in Europe.
  • The company was spun out of the US-based industrial conglomerate in March 2018.

Approach

  • A 6-week analysis was conducted to fully understand production management challenges & opportunities (incl. key impact levers for throughput) plus other functions which would facilitate a major impact on EBITDA.
  • The analysis was immediately followed by an 11-month implementation programme, which lead to a number of extensions into other parts of the factory in Germany.
    • Even took-up an interim Director role to properly conduct Production Planning & Scheduling
  • Key areas of focus included:
    • Management, S&OPmandDe
    • Operational Excellence
    • Procurement

Results

  • 68% improvement in throughput in less than a year.
  • Reduced stock level by €22M in six months.
  • Collapsed the time-to-market and ultimate customer delivery time (knock-on effect to increased client satisfaction rates, improved bid win-rate and reduction in customer churn).
  • Reduced procurement spend by >€10M.
  • Major impact on client financials, both top-, bottom-line and balance sheet.
Go back

JENTS International

JENTS International is an advisory company specialized in identifying and realising operational performance improvements at accelerated pace for Private Equity and (Portfolio) Companies.

Get in touch
News & views

Contact

Links

Stay up-to-date

Website by Scrolla!