MAGOS Consulting

Case study · Plastics and thermoforming

Thirteen forming cells, three shifts, and no forward view of capacity.

A heavy gauge thermoforming manufacturer, about $51M revenue, 13 forming cells.

Results at a glance

$1M+

Tracked absorption savings cumulative through week 28, against an $848K plan, checked weekly with the client’s finance team against baseline by expense line.

144 to 96 days

The cash conversion cycle, 48 days removed. The days between paying for material and collecting the money from the customer.

15K to 21K

Units a week, up 37% on the forming cells the plant already owned, with the extruder excluded.

A rail of thirteen brass forming tools receding into the dark, the nearest dulled with rust and the furthest polished and lit from inside with teal, a small brass counter unrolling a strip of ledger paper at the end of the rail.

The situation

Nobody could say where the week’s work stood. Dispatch was worked by hand, handoffs between shifts were verbal only, and maintenance arrived by radio, sticky note or walk up, with the preventive schedule living in one technician’s calendar. Finance was no easier: vendors paid early, the largest customer paying at 71 days, an invoicing lag of two days or more, and the budget held in static spreadsheets.

What discovery found

Discovery measured the plant against a Management Operating System, meaning the routines, meetings, owners and measures that run the work day to day and week to week. It found that 27% of production elements did not exist and 60% needed upgrade, and that 79% of maintenance elements did not exist at all. Time studies put shift leads at 10% supervising and 30% idle, and mechanics at 0% planned wrench time and 64% reactive, with capacity utilization at 70 to 71%. The ledger baseline found $12M of working capital tied up, $6M of it recoverable, and the leadership survey found 46% of leaders disagreed on both the goals and the strategies of their own business.

What we did

All three principals worked the engagement. The operating rhythm went in first: roles and responsibilities written as behaviors, shift huddles with hour by hour boards across 13 cells and 3 shifts, structured handoffs, a plant wide action register, and a Thursday review run on plan, actual, variance and action. Behind the rhythm sat tools the team runs itself, among them a scheduling and adherence tool fed by the daily dispatch, a changeover hub covering 14 cells by 4 changeover types, a maintenance system taken from almost nothing to the system of record with 487 assets and 179 preventive records, and a finance hub carrying a 12 week cash flow forecast. Eight leadership workshops each closed with an assignment on the floor.

The result

Every figure, and how it was confirmed.

$1M+

Tracked absorption savings cumulative through week 28, against an $848K plan, checked weekly with the client’s finance team against baseline by expense line.

144 to 96 days

The cash conversion cycle, 48 days removed. The days between paying for material and collecting the money from the customer.

about $2M

Cash released from working capital one time, with nearly $3M more planned as inventory moves from over $8M to under $6M, not yet released.

15K to 21K

Units a week, up 37% on the forming cells the plant already owned, with the extruder excluded.

$2M+ a year

Recurring value of the installed systems, modeled rather than banked, rising to $3M+ a year with a 15% downtime reduction. Reported on its own.

Validated weekly by client finance

How we report value

What they kept

At the close they held the tools and their user guides, running on their own exports inside their own network; the written roles; 179 preventive records live on rotation; the skills matrices and the onboarding plans; the self audit for the operating system; and the Thursday review with its action register.

Next step

If this company sounds like yours, ask us what a discovery would look at in your numbers.

You do not have to be ready to buy anything. One of the three of us will answer the question ourselves.

Ask the principals a question