Turning Operational Uncertainty into Investment Clarity

Background:

A private investment group evaluating the acquisition of a precision manufacturing enterprise engaged Crossover Solutions to conduct a Manufacturing Operational Due Diligence (MODD) assessment across two U.S. production facilities. While the company maintained strong customer relationships and specialized manufacturing capability, investors required an independent evaluation of the organization’s operational condition, production scalability, and the investments necessary to support future growth.

Crossover was engaged to assess manufacturing operations, characterize operational risks, and determine the actions required to unlock performance improvement following acquisition.

Critical Issues:

• Inefficient facility layout creating excessive material movement and workflow complexity
• Elevated raw material inventory levels tying up working capital
• Delivery performance declining, requiring frequent recovery through overtime
• Limited operational visibility into productivity, downtime, and throughput
• Inconsistent maintenance and operational management disciplines

Our Approach:

Crossover conducted a structured on-site operational review to characterize plant capability, identify the true production constraints, and define the actions required to stabilize supply.

The engagement focused on production capacity, equipment reliability, workforce capability, and operational execution across casting and machining operations.

Key Actions:

• Increased machining throughput through extended operating schedules and improved production planning
• Restored equipment reliability through targeted maintenance recovery and procurement of critical spare components
• Established casting buffers to protect machining operations and enable recovery activities
• Implemented structured performance tracking to improve operational visibility and daily execution

While the organization possessed strong technical capability and experienced personnel, operational execution and process management required improvement to support sustained growth.

Results:

The engagement provided the investment group with clear operational visibility prior to acquisition.

Crossover’s work enabled investors to:

• Understand the operational condition and capability of the manufacturing organization
• Identify the key constraints affecting productivity and delivery performance
• Clarify the operational investments required to support growth
• Establish a structured roadmap for operational improvement following acquisition

The MODD assessment transformed operational uncertainty into a clear path for manufacturing performance improvement and informed a more confident investment decision.