3. Case Study 1 OPTI
Connectivity
Electric Motor Company
Key Metrics Before OPTI Key Metrics After OPTI
Operations: Operations:
• Productivity at minus 5% • Got productivity above 3% (8% improvement)
• Massive product inefficiencies • Increased product efficiency by average of 7%
Finance: Finance:
• Bloated cost structure • Drove $3 million from cost structure
• Highly leveraged cost structure • De-leveraged 100% in eight months
• Inefficient supplier network • Increased on time deliveries to 92% -- significant
increase in “Velocity of Cash”
Marketing: Marketing:
• Abundant useless inventory • Drove inventory down by 64%; increased turns to 17
Customer Care: Customer Care:
• Delivered quality at 27,500 defective parts per • Drove delivered quality to 1,100 defective parts per
million million
• Received the John S. Smith Champion for Quality
award
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4. Case Study 2 OPTI
Connectivity
Power Conditioning Company
Situation: OPTI Tools Used:
• Revenue of approximately • Sustainability
$46 million
• Two initial plants • Optimizer
• 175 employees • Roadmap
• Severe quality issues • Retool
Proprietary 4
Exclusive Property of Operational Productivity Tool, Inc.
5. Case Study 2 OPTI
Connectivity
Power Conditioning Company
Key Metrics Before OPTI Key Metrics After OPTI
Operations: Operations:
• Bloated inventory • Reduced inventory by 40%
• Highly burdened overhead costs • Eliminated 37% of overhead costs
• “Earned Hours” of four hours per day • Increased “Earned Hours” to over Seven Hours per Day
Finance: Finance:
• 25% Decline in Revenue • Grew sales 12% from bottom
• Inefficient supplier network – 47% On- • On-Time deliveries increased to 82%
Time deliveries
Marketing: Marketing:
• Loss of position in two vertical markets • Regained position in both markets and expanded into a third
market
Customer Care: Customer Care:
• Suffered from national recall of installed • Completed change-outs to their satisfaction in less than 6
product base (Approx. $6 million) months
• Sold to industry competitor
Proprietary 5
Exclusive Property of Operational Productivity Tool, Inc.
6. Case Study 3 OPTI
Connectivity
Sheet Metal Fabricator
Situation: OPTI Tools Used:
• Revenue decline from $4.8 • Sustainability
million to $2.5 million
• Single plant with 51 employees • Optimizer
• Hemorrhaging cash/severe tax • Roadmap
problems • Retool
• Highly leveraged/unable to
purchase raw materials
• Loss of major customer
• One large customer accounted
for 50% plus of sales
Proprietary 6
Exclusive Property of Operational Productivity Tool, Inc.
7. Case Study 3 OPTI
Connectivity
Sheet Metal Fabricator
Key Metrics Before OPTI Key Metrics After OPTI
Operations: Operations:
• Inefficient production flow • Restructured and drove Lean/Six Sigma through entire operations
• Routinely late deliveries • Implemented an integrated CAD/CAM system to facilitate rapid
• Low “Inventory Turns” (Approx. 2X) and more accurate quoting
• Drove raw material turns to 22X
Finance: Finance:
• Highly leveraged cost structure • De-leveraged 75% in eighteen months
• Negative shareholders net worth • Drove Balance Sheet to a positive book value
Marketing: Marketing:
• Highly concentrated in one customer • Re-negotiated with major customer to higher margin
• Identified and secured other high margin accounts in new verticals
Sales: Sales:
• $2.5 million upon entry • Drove sales to a record $5.8 million
• De-concentrated sales base where top 16 companies accounted
for 76% of sales
Proprietary 7
Exclusive Property of Operational Productivity Tool, Inc.
8. Case Study 4 OPTI
Connectivity
Technology Product Manufacturer
Situation: OPTI Tools Used:
• Revenue just over $2
million/negative net worth • Sustainability
• Single plant with 40 employees • Optimizer
• Aging products in commodity • Roadmap
market
• Great industry reputation • Retool
• Production floor totally
constipated
• Significant portion of sales
through independent
distributor
Proprietary 8
Exclusive Property of Operational Productivity Tool, Inc.
9. Case Study 4 OPTI
Connectivity
Technology Product Manufacturer
Key Metrics Before OPTI Key Metrics After OPTI
Operations: Operations:
• Inefficient operations • Restructured the total plant and maxed internal capacity
• Producing at less than 10% plant • Implemented Lean and Six Sigma
capacity • Outsourced to strategic vendors
New Product Development: New Product Development:
• Existing product line tired and • Took from concept to design and manufacture market-leading
commoditized product
Marketing: Marketing:
• No marketing plan • Developed and implemented a comprehensive strategic
• Minimal international presence marketing plan
• Drove 30% of sales internationally
Sales: Sales:
• Just over $2.0 million upon entry • Drove sales over 5X the first year
• Developed and grew internal sales force
• Sold for significant multiple to strategic acquirer
Proprietary 9
Exclusive Property of Operational Productivity Tool, Inc.
10. Contact Information OPTI
Connectivity
OPTI Contacts
www.opticonnectivity.com
http://opticonnectivity.blogspot.com/
Operational Productivity Tool, Inc.
Office Court at Walton Point
482 Norristown Rd, Suite 114
Blue Bell, PA 19422
Phone: 484-351-8305
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Exclusive Property of Operational Productivity Tool, Inc.