Specialty Alloy Foundry - the Company was established in 1912 and is a leading producer of stainless steel, nickel-based and other high alloy specialty castings. Key markets include aerospace & defense, food processing equipment, petrochemical industry and pump valve components. Defense products include: armor plate, muzzle brakes, tank components, naval weapons system supports, submarine actuator housings, diffusers and impellers, gear housings, aircraft nose cones, etc.
At the time of our engagement, the Foundry reported revenue in excess of $20M and was owned by a private equity fund. The PE group hired Fort Dearborn to: (1) prepare the Company’s annual budget and operating plan, (2) identify performance improvement opportunities and (3) advise fund management on strategic planning and growth opportunities for the Company.
• Working with management, Fort Dearborn:
• Reviewed and revised the Company’s annual budget and operating plan.
• Identified profit and cash flow improvements. including:
• Effecting a price increase by implementing expediting fees.
• Outsourcing the pattern shop and rationalizing the number of patterns (SKUs).
• Implementing a reduction in workforce.
• Reviewed lean manufacturing actions and reducing downtime and scrap by improved scheduling and procurement processing.