Ray Smith Group

The Ray Smith Group, a UK market leader in the design and manufacture of automotive parts, was struggling to generate a return from its new purpose-built factory.

We appointed an interim manager (Clarence Willcock) whose overall brief was to investigate, identify and implement opportunities to improve RSG profit performance. Following an initial phase and the realisation that there was no quick fix to the problem, the role was defined as Interim Manufacturing Director and the major objectives for the assignment were identified.

The solution

The solutions implemented by the interim manufacturing director were as follows:

• Implemented procedures and disciplines consistent with the principles of lean manufacturing and essential to the smooth running of the Company´s sophisticated MRP system.
• Determination of key performance indicators and business ratios, and the development of timely reporting to raise awareness of these essential parameters.
• Restructuring the manufacturing operations including the management structure, personnel, systems and procedures, to facilitate change and a culture of continuous improvement.
• Complete overhaul of the product cost base including bills of material, routes, labour and overhead recovery rates to afford improved profit performance monitoring, margin monitoring, and manufacturing cost control.
• Introduced a ‘New Developments & Processes´ team to target product cost reduction and to provide a focus on the development of new products, manufacturing processes and production engineering.
• Implemented structured management and control of inventory policies to achieve and maintain effective stock control.
• Implemented annual appraisals linked to structured rates of pay for all hourly paid personnel.
• Introduced a new bonus/incentive scheme structured to support manufacturing cost reduction and to provide the basis for working time reductions for the hourly paid.
• Supported by a favourable swing in product mix, at the end of the 1st year profits increased by over 300%.

The benefits

A strong and proactive working relationship with the Joint Managing Director, Mike Smith, ensured the success of this assignment. At a time of significant change for the company the interim brought an extensive range of business skills and experiences to compliment those already in situ at board level within the organisation. This helped to quickly provide a broad prospective on the real issues and the resulting achievements provided an organisational structure, systems, procedures and an overall approach that enabled the focus on continuous improvement to be maintained.

Adds Mike Smith, ‘Clarence has helped the company through a very difficult period of the reorganisation of our manufacturing facility. In the time he spent with us he introduced systems and disciplines that helped to ensure the information we work with is fully up to date. Very conscientious and hard working, he was continually looking for ways to improve performance.´

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