Restructuring of a medium-sized component manufacturer

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    Restructuring of a medium-sized component manufacturer

Our Client

Founder of a mid sized corporate


German producer of components with approx. 350 employees

Our function

  • Interim Chief Restructuring Officer
  • Chief Executive Officer
  • Interim Program Office Manager


Michael Hengstmann and Ullrich Weirauch


  • Highly negative operating result
  • Liquidity issues and high leverage
  • Reststraining company agreements with the employees and tensions with the workers council
  • Inefficient processes in production leading long leadtimes and low on time performance
  • Significant quality problems and quality cost
  • Unfocused product portfolio with partially strong negative contribution margins

Action Plan

  • Introduction of a Chief Restructuring Officer and a Program Officer
  • Development of a restructuring plan in consensus with the workers council
  • Socially sensitive reduction of workforce in the indirect departments
  • Implementation of significant cost reduction initiatives with direct and indirect material and overhead cost
  • Introduction of measures to improve quality and efficiency in production
  • After completion of the project phase, change of both interim managers to the board of the company

Key Results

  • Sustainable savings in purchasing, payroll and general cost
  • Significant increase in average contribution margin per product
  • Elimination of order back log despite of omittance of extra shifts
  • Strong reduction of average throughput time
  • Improvement of on time performance
  • Reduction of quality cost
  • For the first time in 8 years sustainable profitable turnover

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Restructuring of a medium-sized component manufacturer

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