Case study: Restructuring of a steel processor

Starting situation

• 2nd generation family business
• Strong growth through acquisitions in recent years
• Competitiveness is ensured solely through steel purchasing prices
• Weak to medium process alignment
• Loss of competitiveness due to changing customer demands (loss of almost 40% of sales)
• Weak motivation of the workforce and non-transparent actions from the local management team

Solution

• Managing Director ad interim
• Adapting shift models and flexibilization of workforce
• Development of additional services that are increasingly desired by customers and potential customers
• Introduction of transparent calculations to enable the acquisition of new products and new customers along with profitability of sales
• Elimination of non-transparent actions with corresponding disciplinary consequences
• Reduction of the workforce and development of critical competencies with a corresponding reduction in manufacturing costs
• Securing processes by rebuilding and adapting existing processes

Result

• Increase of internal efficiency and output
• Decrease of scrap
• Doubling of EBIT within 18 months