Strategic Intent

To create an organization with consistent and reliable processes, management behaviors and decision-making that accelerates operating income to 25% within three years


  • $3 billion global supplier of aerospace systems and components, serving a broad spectrum of the aviation industry worldwide
  • 64 operating locations that design, engineer and manufacture aerospace systems
  • Key U.S. facility with significant growth potential has both declining customer service and poor financial performance (O.I. only 7%)
  • Internal corporate efforts have failed in this facility
  • President/COO has keen urgency around the change process

Issues and Barriers

  • Degenerating state of costs, customer service and quality that is jeopardizing future orders and new business growth opportunities
  • On-time customer product delivery less than 50%
  • Attitudinal and behavioral issues, lack of skills/training, communications breakdowns and poor process controls, all contribute to the dysfunctional nature of this facility
  • Consistent reactive fire-fighting is the plant management’s style

Key Implementations

  • Translated and aligned SMART goals across all organizational levels
  • Developed and implemented a comprehensive, proactive System for Managing (SFM) that is focused on production scheduling and capacity planning
  • Established goal achievement review process linked to new SFM
  • Enhanced sales process to drive business plan realization


Cost of Quality Reduced by 51%

  • Financial results are an overall annualized improvement of $4.1 million, which is translated to an operating income ratio of 16%, up from the prior year’s level of 7%, a big year-one step toward the three-year O.I. goal of 25%
  • Shop floor productivity improved by 48%, contributing $1.8 million to the new O.I. level
  • Cost of quality due to scrap, rework and product defects was reduced by 51%, from 8.9% to 4.3%, of sales, another significant income contributor
  • Reduced past-due backlog hours by 25%, from 16,500 hours to 12,200 hours, improving revenue flow and customer satisfaction

Client Perspective

Things are moving in the right direction in [plant location].
— President & COO

I can attest to the change in behaviors in [plant location].
— Division President

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