INTERIM MANAGEMENT

Client was a $300M PE platform company that acquired a $100M bolt-on manufacturer of food ingredients and aseptic packaging beverages
Both the CEO ad General Manager of the bolt on left the organization
Client re-engaged DPO&Co after the initial project, which focused on Activity Based Costing (ABC) Model and operational Value at Stake (VAS) levers (worth $30M)
Client’s EBITDA numbers were declining due to poor production performance, which was amplified by producing unprofitable SKUs and other maintenance issues
DPO&Co team was tasked to drive a holistic turnaround consisting of :

Interviewed 10+ stakeholders and production staff to capture changes since previous project and 10+ production staff to capture HR survey
Collaborated with HR & production leads to benchmark salary & performance best practices and design events and KPIs to improve employee engagement
Collaborated with client team to push Value at Stake initiatives, find and negotiate with suppliers, and secure financing
Reduced overpriced outsourced activities (e.g. trucking & storage)
Invested on processes to reduce waste (e.g. flow maters & pail filler)
Implemented new pricing for specific packaging and storage costs
Addressed maintenance root cause analysis by installing cameras for two production plants and warehouses and developing a standard operating model to capture downtime, planning deviation and potential EBITDA impact

Provided visibility to C-suite on the major factors of declining EBITDA & required action plans / solutions to turning those around
HR employee engagement – potential $9M EBITDA
Aligned KPI with production output
Benchmarked salary against market
Designed performance evaluation and clear career progression plans
Implemented hard and soft benefits, e.g. employee of month parking, hard-cash bonus
Drove VAS implementation by securing $0.6M capital expenses with $2.5M EBITDA impact
Set up structure and cadence for client team to continue momentum for other low impact VAS with longer execution time
Maintenance root cause analysis
Identified $20M+ EBITDA future opportunity by reducing unplanned time which was ~15% total hours
Trained client team on the SOP (Standard Operating Procedure) for using the camera and excel model for continuous improvement initiatives

INTERim Operating Partners