Case Study: Leveraging an Interim VP of Operations to Improve OTD and Financial Performance

Gerry Management

Learn how MRN partnered with an oil and gas production equipment manufacturer to address supply chain and leadership challenges.

Industry: Oil and Gas

Role Served: Vice President of Operations/General Manager

Situation: The client, an oil and gas production equipment manufacturer, was experiencing delivery issues and poor financial performance at one of its operating locations.  The site was a recent acquisition and was not fully integrated with the corporate business system and philosophies. Operating costs were exceeding sales. On-time delivery was incredibly low, and the company was facing many supply and scheduling issues.

Opportunity: With the company facing supply chain, scheduling, and execution challenges, they sought external expertise. A Manufacturing Resource Network partner was retained as the Interim VP of Operations to provide the leadership necessary to navigate the immediate difficulties and steer the ship toward profitability.

Action Taken: MRN worked with the company to evaluate and re-assign current employees based upon their strengths and hired additional qualified employees where needed. Daily schedule communication and a focus on metrics was installed. Working inside the ERP system became a mandatory way of life.  The emphasis on near-term achievements boosted employee morale and created an excitement within the workforce.   

Results: In eight months, MRN leadership helped turn the plant around and achieved these results:

On-Time Delivery (OTD) went from 38% to 97%

Monthly EBITDA went from -55% to +24%

ERP system was used for every business transaction

In addition, MRN helped interview and hire a full-time site leader. With a strong system in place, the plant could continue achieving positive results.

About MRN

Manufacturing Resource Network offers flexible interim manufacturing management services for the short- or long-term – as long as your hiring process takes – and we can provide key management and executives for every department in your manufacturing facility. Our hands-on professionals are ready to fill any role in your company with the skills and experience you seek, and provide mentorship, assist with strategic planning, serve as technical advisors and more.