Manufacturing Case Study 3 – International Manufacturing

Provider

  1. Horus Consulting
  2. West Sussex & Czech Republic
  3. 2011/12

Introduction

The business is a family run precision engineering company with a subsidiary in the Czech Republic. The previous Finance Director was dismissed following a number of inaccuracies in the reported numbers to the board; the company was also very dependent on one customer and who was suffering from quality /delivery problems.

The purpose of the assignment was to:

  1. Play a leading role in strategically redeveloping the business
  2. Ensure complete and accurate monthly reporting for both the UK and CZ(deadlines had been missed and error levels had increased)
  3. Restore confidence in the Finance Team
  4. Overhaul and improve the HR function

Analysis

Following an initial meeting with the Managing Director an action plan was drawn up to deliver results within 6 months.

The team role analysis revealed that the finance department was previously not given clear direction and was demoralised. The Financial controller was technically strong with a good source of knowledge: the purchase ledger just required management and guidance. The issue was no accurate reporting, inadequate financial modelling and a significantly out of date HR handbook.

Development

  1. 1. Daily meetings were instigated with the Financial Controller to complete the outstanding statutory accounts and develop a transparent accounting framework in which all costs and revenue were booked to the ledger.
  2. Regular discussions were held with the Managing & Operations Directors
  3. Mapped out the existing process, reviewed the constraints and blockages, analysed what is needed and by whom?
  4. Talked to the senior management team to ensure issues were resolved

Other issues were looked at during this time as confidence in the finance team grew: – for example:

  • The auditors were replaced with a firm more suited to the needs of the business
  • Sales and procurement strategy were developed to minimise the rapid swings in profitability
  • Tax planning was introduced

Outcomes

  1. Accurate management accounts for the UK & CZ were issued within 5 days of the month end
  2. Improvement in morale, leading to less mistakes and willingness to undertake new ideas
  3. New improved HR pack now legally compliant and more effective
  4. Introduction of 12 week rolling cash forecast for both the UK & CZ
  5. Introduction of key risks and a plan to minimise them