Manufacturing Turnaround Case Study: Inside the Rescue

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Machines sat idle. Orders missed. Cash bleeding.

At a mid-sized European factory, the floor had fallen quiet. Not for a shift change—this silence was different. Equipment failures, bottlenecks, and angry customers had ground production to a halt. Burned-out supervisors were leaving. Suppliers were cutting credit lines. And the company’s leadership had no answers.

The board had one question: Can this plant be saved in time?

With no time to lose, they called CE Interim. Within 72 hours, a veteran interim CEO was walking the factory floor, ready to lead what would become one of the fastest manufacturing turnarounds in the company’s history.

Phase 1 – Signs of Breakdown: When It’s More Than a Bad Quarter

By the time the interim leader arrived, it was clear this was more than underperformance—it was a slow-motion collapse:

• A 6-month backlog and missed delivery windows
• On-time delivery at just 58%
• Cash burn exceeding $500,000 per month
• WIP flooding storage areas; stock management non-existent
• Plant leadership confused and morale shattered

Functional KPIs conflicted. Lean tools were laminated but ignored. One executive described it bluntly:

“We had plans. We had reports. What we didn’t have was output.”

This wasn’t a situation that strategy decks or advisory firms could fix. It needed someone to take control—fast.

Phase 2 – Stabilization: Stepping in With Control and Clarity

The interim CEO—provided by CE Interim—didn’t waste a day. Within 48 hours:

1. A 13-week cash flow forecast was implemented

2. Immediate vendor triage began, with calls to stabilize key suppliers

3. A daily war-room rhythm was introduced: cross-functional standups, KPI huddles, frontline escalation

Importantly, stabilization wasn’t just about data—it was about people.

Shift managers were re-engaged. Transparency replaced firefighting. Quick wins (like eliminating redundant approvals or fixing bottleneck alerts) began to restore confidence.

“We followed CE Interim’s rapid intervention model,” the interim CEO later explained. “No noise, just traction.”

Phase 3 – Turnaround in Motion: What Changed and How

i) Financial Control

• Renegotiated supplier contracts slashed input costs by 18%
• $700,000 in recurring cash leaks were plugged
• Two low-margin product lines were shut down to focus on core profitability

ii) Operations Overhaul

• Production model shifted from make-to-forecast to make-to-order
• WIP inventory dropped from 90 days to just 8
• OEE (Overall Equipment Effectiveness) jumped from 56% to 74% in 6 weeks

Processes were simplified. Changeover times were halved. Maintenance moved from reactive to scheduled.

iii) People and Morale

• Daily plant walks, 1:1s with every line leader, and open-door conflict resolution
• A recognition system launched: 3 wins per shift – small victories celebrated in team huddles
• Exit interviews stopped. Internal referrals began.

“Average people deliver excellent results when recognized,” the interim CEO wrote in his weekly update.

iv) Commercial Repositioning

• Sales refocused on three profitable verticals
• Service Level Agreements were renegotiated with top clients
• Sales forecasting was rebuilt from scratch, and CRM discipline enforced

No new tech. No expensive rebrands. Just proper targeting, smart priorities, and leadership that knew what mattered.

Phase 4 – Outcome: From Survival to Stability

In just 90 days:

• On-time delivery reached 93%
• EBITDA turned positive
• Inventory was reduced by 40%
• Factory became audit-ready
• Client complaints fell by 82%
• Staff turnover stopped entirely

At Month 6, the business was back in black. A full-time successor CEO took over. Dashboards were stable. Systems were humming.

“What we couldn’t fix in 18 months, they turned around in 12 weeks,” said the Chairman.
“We didn’t get advice. We got execution.”

The interim leader from CE Interim exited quietly—mission complete.

What This Case Tells Us: 5 Lessons from the Front Lines

1. Speed wins. Every week of delay cost $150,000 in lost margin.

2. Cash clarity is oxygen. The 13-week model changed the game.

3. Operations hide waste. An external eye sees what insiders normalize.

4. Morale is a lever. Turnarounds aren’t just numbers—they’re people.

5. Leadership isn’t optional. Interim management works when everything else stalls.

📊 Turnaround Timeline

Could Your Plant Be the Next Rescue Story?

Not every manufacturer is in freefall. But many are sliding quietly—until they’re not.
If your KPIs are red, your teams tired, and your customers losing faith, this is when most companies wait too long.

At CE Interim, we deploy crisis-tested leaders in 72 hours. No CVs. No theory. Just results.

Interim leadership isn’t a stopgap. It’s a catalyst.