Success Stories
from the Telecommunications Industry

Problem:
A division of a top U.S. Telecommunications Equipment manufacturing company was experiencing consolidation in their major markets and as a result was seeing extreme price pressure from their customers. In addition, customers were requiring more flexibility in scheduling and shorter lead times.

What We Did:

• Provided organizational restructuring and turnaround assistance to a $600 million division of a top U.S. telecommunications equipment manufacturing company. The project focused on strategy development, achieving operational excellence, improving supply chain management and increasing competitiveness both in cost and flexibility.
  • Worked closely with the Chief Operating Officer to transition from a highly functional organization, to a product / market driven, business unit structure.
  • Provided facility rationalization assistance to close and sell three of the four manufacturing locations and opened a highly automated P.C. board assembly and test facility in Mexico.
  • Closed stand-alone engineering and marketing locations and opened an integrated manufacturing, engineering and marketing operation.

Impact:

• Increased profit before tax by over $70 million the first year and by over $100 million in the eighteen months following the project.
• Achieved a 40% reduction in inventory, resulting in 25 COGS turns.
• Reduced manufacturing cost by 28%.
• Increased manufacturing space utilization by 35%.
• The business unit later won the Shingo Award for manufacturing excellence and became the first U.S. manufacturing company to win the Deming Prize for Quality.