Company K had been established for just over 2 years and had a reasonably good and secure sales base. However it was losing a substantial amount of money each month. An ibd Advisor was brought in to investigate the problem and after one week was able to identify a number of areas where money was being wasted. Two main causes were identified, poor and weak management/supervision which allowed low manufacturing efficiency and uncontrolled spending where effectively anyone could buy anything.

An action plan was prepared and presented to the managing director. The plan was accepted and implemented. Buying procedures were developed, unnecessary spending was stopped, all managers/supervisors were assessed, some were released and others were retrained and continuous improvement (Kaizen) practices were introduced.

During the following 6 months, spending was reduced by over 30% and productivity more than doubled resulting in the first monthly profit being delivered in the sixth month.  Further profit improvement opportunities were identified during the engagement, which were either implemented at the time or built into future improvement plans