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Backlog Elimination and Profitability Reset for a Tier 1 Supplier
Background:
A Tier 1 supplier serving multiple OEM programs faced deteriorating financial performance and severe operational instability. With negative EBITDA, growing production backlogs, and OEE well below target, the plant risked losing OEM confidence and long-term viability.Critical Issues:
- Backlogs growing against customer demand, jeopardizing OEM schedules.
- Plant underperforming with a downward financial trend.
- OEE 20% below target, driven by chronic equipment downtime and poor First Run Capability.
- Plant management lacked motivation, alignment, and teamwork.
Approach:
Crossover Solutions conducted a comprehensive assessment to stabilize operations and chart a path to profitability.Key Actions:
- Onboarded the new plant manager with active XO support to accelerate leadership impact.
- Coached plant leadership and restructured the management organization to restore accountability.
- Enhanced the management operating system with disciplined daily reporting and performance visibility.
- Applied structured problem-solving to address chronic equipment uptime and First Run Capability issues.
Results:
- Backlogs fully eliminated before the end of assignment.
- New plant manager successfully onboarded and supported by a restructured leadership team.
- OEE trending upward with embedded problem-solving discipline sustaining improvement.
- Renewed accountability and motivation within the plant leadership team.
By the Numbers
$5.5M
annualized improvement plan created
$3M
in savings implemented during engagement
100%
backlog elimination achieved
20%
gap in OEE addressed with sustainable improvement actions