presentation to indiana university september 18, 2001 indiana university kelly school of business

WWW.THEKEYSTONEGROUP.COM September 18, 2001 2

Today’s Agenda

» Introductions» Consulting Overview» Consulting Environment» Keystone Overview» Small Firm versus Big Firm» Keystone experience in turnaround situations


Consulting Overview

Business Issues

» Business stops growing

» Profitability is poor

» Specific Problem

» Operational Issues

»Poor Manufacturing throughput

»Inventory Issues

»Other

» Strategy

Our Tools

» Interviews

» Access to client personnel

» Data collection

» Analysis

» Benchmarking

» Strategy

» Focus

» Client team

» Implementation plan

Our clients are seeing a problem once, but we see it many times…


Consulting Environment

» High intensity and energy» Client result focused» Deadline focused» High expectations» Forefront of new business solutions» Team problem solving» Creative ideas and problem solving emphasis» New clients, new problems, new solutions» Travel / Flexibility expected

The consulting environment is characterized as a high energy, dynamic setting…


Consulting Environment

» Analyst = Staff Consultant» Associate = Associate» Principal = Manager» Director = Partner

The career path is well defined but less rigid than at a larger firm…


About Keystone Consulting Group

» Focused on middle market manufacturing and distribution companies

» Keystone’s premise is to offer “Major League” consulting services to the middle market

» Pragmatic vs. theoretical» Highly experienced, un-leveraged teams» “Work with” versus “tell” clients

Keystone is a general management consulting firm based in Chicago and founded in 1991…


About Keystone Consulting Group

Keystone Clients

11%6%

11%

72%

Manufacturing Distribution Retail Other

Our marketing focus is oriented towards middle market, manufacturing and distribution companies…

…we define middle market as companies with $50M to $1B in sales.

Keystone Clients

33%

27%

18%

22%

>$500M >$100M >$50M <$50M


Keystone vs. Other Firms

Keystone

» On the job training

» Small project team

» Hands-on: heavy client interaction and dependence

» Regional market focus

» Self-paced career progression

» Work directly with Senior Managers

Larger Firms

» Training program

» Large hierarchical project teams

» Consulting firm team: lower client interaction dependence

» Wider market focus

» “Lock-step” career progression

» Work with division or department management

Differences exist between Keystone and larger firms…


Analyst Project Experiences


Analyst Experience

Consumer Product Manufacturer…» Client - $300 MM consumer product

manufacturer in New York - cosmetics division

» Project Team - Director, Senior Associate, Analyst

» Client Problem - Order Fulfillment» Solution


Analyst roles on this project were...

» Interviews» Concept Development» Data Analysis» Site Visits» Initial Conclusions» Industry Research» Presentation

Analyst Experience


ISSUES

• Insufficient time to respond to changes

• Errors• Bottleneck

situation• Late in ordering• Missed ordering• Insufficient use

of forecast/poor forecasting

0%10%20%30%40%50%60%70%80%90%

100%

Order Fulfillment

Customer ChangesProduction ExecutionSchedulingComponent Availability

FIXES

• Diligent weekly review• “Real time” info on

missed shipments• Heightened focus on

delivery targets• Scheduling review,

exception report• Promo limits - number

of changes• Limit overrides and

changes to schedule• Prioritize vendors;

review planning needs

Analyst Experience

Why Product Does Not Ship On Time


Analyst Experience

Automotive Supplier…» Client - $100 MM Tier 1 automotive supplier

specializing in steering linkage systems» Project Team - Director, Analyst» Client Problem - Throughput, Customer

Pressures» Solution - Lean Manufacturing» Results


Issues » Key customer demanding annual cost

reductions» Initial attempt at Lean production went

nowhere» Belief that better use of MRP system was

the solution» Work force concerned that Lean equals

layoffs» Piece-rate incentive system

Analyst Experience


Solutions » Implementation of Keystone’s Flow Design

methodology to energize Lean efforts» Implemented a smooth flow of materials to

minimize excess handling and Work-In-Process

» Implemented a raw material kanban system with visual pull scheduling

» Developed an incentive pay system centered around performance to plan, delivery and quality

Analyst Experience


Results» Benefits began within 6 months of project initiation» Annual cost savings of $850,000 on $33 Million in

sales

How did we get those savings?» Inventory Turns increased by 18.2%» Scrap decreased by 57%» Rework decreased by 92%» Labor $$ Per Unit Produced decreased by 21.2%

Analyst Experience


Senior Analyst roles on this project were...

» Develop / manage the project plan & budget» Team Facilitator» Training of Team Members & Management» Interviewing» Data Collection and Analysis» Identifying Sources of Problems» Implementing Changes» Presentations to Management» Conceptual Integration with Existing Systems

Analyst Experience


Contact Us

Please contact us with further questions, or to submit a resume to interview with Keystone

» Sarah Austin - [email protected]

» Brian Stewart-

[email protected]» Joe Zito - [email protected]» Ryan Windy - [email protected]

On Campus Interview

» November 1st

presentation to indiana university september 18, 2001 indiana university kelly school of business

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