- Textile Group supported by a US investment fund
- Factory in Asia with 800 employees and 11,000m2
- TO of €17m, negative Ebitda of €1m
The factory, which had been without a Director for two years, had outsourced a significant part of its production to the detriment of internal capacities. The Group, which had tried unsuccessfully to sell the factory in its current state, wanted to make a final effort to turn around its operation and profitability, before deciding whether to sell it or retain it within its industrial network, if the turnaround revealed potential.
- To restore Ebidta to 0
- To halve the number of indirect employees (from 30% to 15%)
- To bring outsourced volumes back in-house to restore the factory’s workload
An initial audit conducted three weeks into the assignment revealed an insufficient structure in terms of resources and industrial processes with wide scope for improvement.
A seven-month action plan was defined and implemented immediately. This included actions relating to:
- Delivery times
- Supplier quality
- Supplier management
- Production methods (introduction of Lean Manufacturing)
- Improvement in skills, working methods and teams’ motivation
The assignment was made more complicated, however, by a powerful and demanding union.
CLIENT RESULTS AND BENEFITS
- In one month, the Valtus Manager had understood the challenges, proposed an action plan and set to work. Radical transformation of the production methods in the sewing workshop rapidly generated improved productivity with a positive impact on Ebitda of €1.2m, or 20% more than the initial target.
- This allowed the factory to be retained within the Group and to become a base for Asian operations.
International – Performance