Focus Management Group

Restructuring a Contract Research Organization

Contract Medical Device Manufacturer

Company:

Contract Medical Manufacturer

Situation:

A full-service contract medical manufacturer of precision medical devices, with expertise in engineering and design, clean-room injection molding, decoration and finishing, manual and automated assembly and packaging, had exhausted availability under its line of credit with its secured lender. The Company operated clean-room manufacturing facilities located in two USA facilities and also a plant in Puerto Rico.

Focus Scope:

Focus was retained to determine immediate cash needs and to validate cost initiatives being undertaken.

Tasks Performed:

  • Prepared cash flow projections, and provided tools for management to accurately forecast the future performance of the business.
  • Evaluated standard costs, and assessed contribution by facility, by client and by product
  • Evaluated tooling costs and plant processes.
  • Evaluated capacity of Puerto Rico plant and determined break even sales volume.
  • Designed lean manufacturing and governance model objectives for floor production.
  • Introduced management team to Practical Problem Solving across all plants and departments to provide improvement opportunities in every facet of the business.
  • Instructed on use of Single Minute Exchange of Dies (“SMED”) to minimize mold changes and maximize capacity and available run time.
  • Provided recommendations regarding purchase and installation of a common Computerized Maintenance Management System (“CMMS”) in each plant so all maintenance information can be properly stored and exchanged between plants.

Results:

  • Focus brought visibility regarding the Company’s future cash needs for its equity sponsor and secured lender, which helped both stakeholders design a restructuring plan for the business.
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