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.
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.