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A foundry crane with a purple molten metal stream and a green digital grid symbolizes interim management by KBC.

Manufacturing | Industry & Mechanical Engineering

Interim Management to Stabilize Production at a Foundry Following Bankruptcy

After a long period of insolvency and a change in ownership, a medium-sized foundry faced significant organizational, operational, and technological challenges. Significant backlogs due to low Overall Equipment Effectiveness (OEE) and outdated machinery made it urgent to quickly consolidate operations. KBC established a specialized interim management team to ensure transparency across all production data and to develop targeted measures for sustainable stabilization.

Interim Management by the Numbers

Increase in OEE
on technical and organizational time losses
Delivery backlogs Successfully Reduced 

The Customer

Medium-sized Tier 2 automotive supplier

The client is a medium-sized foundry that serves as a Tier 2 supplier to the automotive industry. Following a lengthy period of insolvency, the company had recently changed hands and was faced with the urgent task of stabilizing operations as quickly as possible. There were significant shortcomings within the organization: inadequate analog data collection, a lack of systematic optimization approaches across the entire production process, and an outdated machine park led to considerable inefficiencies and losses of equipment, tools, and fixtures. The low overall equipment effectiveness resulted in significant delivery backlogs, which jeopardized the company’s market position and made short-term consolidation and restructuring urgently necessary. 

The Project

Interim Management to Ensure Transparency and Stability

The goal of the interim management was to immediately establish transparency regarding equipment data, production metrics, and OEE loss types. Based on these findings, the plan was to improve OEE by reducing organizational, technical, and quality-related losses and to increase efficiency in management and processes in order to sustainably reduce the backlog of orders. 

KBC first established a systematic process for collecting and analyzing all relevant operational data to gain transparency into the types of losses and inefficiencies occurring. Based on this data, areas requiring action were prioritized, and fact-based optimization activities were identified. Through targeted measures, the consulting team increased plant availability as well as the efficiency of control systems and business-critical processes. Particular emphasis was placed on reducing technical, organizational, and quality-related losses along the entire value chain in order to significantly increase OEE. 

Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A bald man wearing square dark glasses, smiling warmly at the camera. He is wearing a navy blue jacket over a white shirt, along with a brown leather belt and a silver wristwatch; both hands are in his pants pockets.
Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A bald man wearing square dark glasses, smiling warmly at the camera. He is wearing a navy blue jacket over a white shirt, along with a brown leather belt and a silver wristwatch; both hands are in his pants pockets.

This Is How We View Interim Management

Interim management means acting quickly while simultaneously establishing structures that have a lasting impact. In a crisis situation, every day counts. We must not only address the symptoms, but also identify the root causes of the problems and bring them to light. Only then can we make targeted improvements and achieve true stabilization.

Martin Betz, Partner at KBC

The result

Interim management increased OEE, established transparency, and stabilized business operations

Throughinterim management, KBC achieved a 20 percent increase in OEE. Establishing complete transparency across all production data made it possible to successfully develop fact-based optimization measures. Types of losses occurring in machines, tools, and fixtures, as well as inefficiencies in processes, were identified and addressed as a priority. 

Plant availability and the efficiency of control and manufacturing processes were significantly improved. The optimizations implemented contributed significantly to the stabilization and sustained improvement of business operations. The backlog of orders was successfully reduced, and the company’s competitiveness was restored.

Other Projects That Make a Difference

Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A man with a shaved head and distinctive dark rectangular glasses, smiling warmly at the camera. He is wearing a dark blue suit with a matching jacket and pants over a light blue shirt without a tie, a cognac-colored leather belt, and a silver wristwatch on his right wrist; both hands are in his pants pockets, and he has an upright and confident posture.
Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A man with a shaved head and distinctive dark rectangular glasses, smiling warmly at the camera. He is wearing a dark blue suit with a matching jacket and pants over a light blue shirt without a tie, a cognac-colored leather belt, and a silver wristwatch on his right wrist; both hands are in his pants pockets, and he has an upright and confident posture.
Martin Betz
Partner

Facing a similar challenge? Talk to us

Whether it’s interim management following a corporate crisis, improving OEE in manufacturing, or stabilizing business operations: In a brief discussion, we’ll determine which steps make sense and how KBC— an international boutique management consulting firm based in Munich —can help you move forward. 

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