Company Project B

Background

• Established in 1996.
• Manufacture hair and skin products.
• Reduction in sales due to economy.
• Company was financially distressed.
• Lack of production planning and control.
• Low productivity levels.
• Increase in manufacture back orders.

Client Constraints

• Client operating on an informal basis.
• Lack of working capital.
• Weak financial management (lack of financial control).
• Management Capacity.
• High Staff turnover.

Interventions

• Financial
• Development and implementation of debtors system.
• Cash flow management system.
• Development and implementation of a management reporting system.
• Production / Service delivery
• Development and implementation of production planning/ scheduling system.
• Development of production standards.
• Development and implantation of ordering system

Outcomes

• Financial
• Debtor reduction of 55%
• Production / Service delivery
• Productivity improvement from 43% - 70%

Impact

• Financial
• Improvement of debt collecting of R400 000 (from R900 000 – R500 000.
• Improvement of net cash position.
• Performance improvement of R1,6 million as a result of productivity improvement (43% - 70%).
• Human Capital
• No job losses