The Company is a foundry that was established in 1912, and is a leading producer of stainless steel, nickel-based and other high alloy specialty castings. The Company’s key market segments include aerospace and defense, food processing equipment, petrochemical and pump and valve components.
Defense market products include armor plates, muzzle brakes, tank components, naval weapons systems supports, submarine actuator housings, diffusers and impellers gear housings and aircraft nose cones.
At the time of the engagement, the Foundry reported revenue in excess of $20M and was owned by a private equity fund. The PE group hired Fort Dearborn to (1) prepare the Company’s annual budget and operating plan, (2) identify performance improvement opportunities and (3) advise fund management on strategic planning and growth opportunities for the Company.
Working with management, Fort Dearborn:
–Reviewed and revised the Company’s annual budget and operating plan; and
–Identified profit and cash flow improvements. including:
Effecting a price increase by implementing expediting fees;
Outsourcing the pattern shop and rationalizing the number of patterns (SKUs);
Implementing a reduction in workforce; and
Reviewing lean manufacturing actions and reducing downtime and scrap by an improved scheduling and procurement processing.
Fort Dearborn identified over $2.5 million in annual profit improvements and improved working capital.
FDP developed a comprehensive annual operating plan, which identified key strategies and tactics.
Fort Dearborn assisted management in the integration of a recent acquisition, including identifying and implementing manufacturing overhead reductions.