UK Seating manufacturer profitability

The issue

A leading UK-based specialised seating manufacturer, a pioneer and clear market leader of the “lie flat seat/beds” segment, was incurring monthly losses and cash outflow and suffering significant operational issues around schedule adherence to meet customer aircraft delivery requirements.

Our approach

PricewaterhouseCoopers was asked to develop and then implement, a Recovery Plan to bring the business back to profitability. Work commenced with a multi disciplinary three week intensive operational review of the business. The work set out the key elements of the Recovery Plan – focussing on four main areas, cost reduction, operational stability, commercial/contract review and business process improvement around new product introduction. Implementation started – with the team focussing on operational improvement at the shop floor level, aimed at ‘make product, on-time and on-budget’. Process improvement task forces involving management and staff took place in engineering change, materials variance, customer service and engineering.

The outcome

After just five months the operational benefits began to show through:

• Output and quality up
• Shortages at launch down
• Specific programme stoppers down
• Productivity trebled
• 95% schedule adherence

And the business benefits:

• Substantial cost reduction/pa
• EBIT positive
• Sustainable profit into next quarter
• New orders won