Direct Labor Productivity program at PE-backed heavy equipment manufacturer
We helped scope and implement a program to increase labor productivity at a facility manufacturing equipment serving the volatile oil & gas industry. Increases to productivity drove a 20% YoY increase in unit volume, enabling growth for the portfolio company.
Results and Impact
Our team supported a PE-backed manufacturing company serving the oil and gas industry in identifying and delivering a portfolio of initiatives resulting in a 40,000 direct labor hour efficiency improvement. Increase in productivity drove plant capacity, increasing overall labor productivity (OLE) and enabling the company to capitalize on increasing oil prices, driving YoY revenue and volume by 20%.
Context
Client was purchased by private equity fund in 2018 following carve out from a global international conglomerate. Serving the oil and gas market, the Client had ongoing difficulties adjusting its operations in response to volatile oil prices. The Arcos team was engaged to improve labor productivity in the plant to improve ability to capitalize on high oil prices in 2022.
Approach
The Arcos team supported execution of a series of idea generation workshops to capture the best ideas within the organization. We then onboarded project plans and business cases to a customized project management platform using Smartsheet and Power BI to manage the program, providing regular read outs to the CFO and COO to monitor progress.
