1. Consulting environment Keystone overview Small firm versus big firm
Today’s Agenda
Introductions
Consulting overview
Consulting environment
Keystone overview
Small firm versus big firm
Keystone experience in turnaround situations

2. Our clients are seeing a problem once, but we see it many times…
Consulting Overview
Our clients are seeing a problem once, but we see it many times…
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

3. Consulting Environment
The consulting environment is characterized as a high energy, dynamic setting…
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

4. Consulting Environment
The career path is well defined, but less rigid than at a larger firm…
Analyst
Associate
Principal
Director
Staff Consultant
Associate
Manager
Partner

5. About Keystone Consulting Group
Keystone is a general management consulting firm based in Chicago and founded in 1991…
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

6. About Keystone Consulting Group
Our marketing focus is oriented towards middle market manufacturing and distribution companies…
…we define middle market as companies with $50M to $1B in sales.

7. Keystone vs. Other Firms
Differences exist between Keystone and larger 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

8. Analyst Project Experiences

9. Consumer product manufacturer…
Analyst Experience
Consumer product manufacturer…
Client - $300MM consumer product manufacturer in New York - cosmetics division
Project Team - Director, Senior Associate, Analyst
Client Problem - Order Fulfillment

10. Interviews Concept development Data analysis Site visits
Analyst Experience
Analyst roles on this project were...
Interviews
Concept development
Data analysis
Site visits
Initial conclusions
Industry research
Presentation

11. Why product does not ship on time…
Analyst Experience
Why product does not ship on time…
ISSUES
FIXES
Insufficient time to respond to changes
Errors
Bottleneck situation
Late in ordering
Missed ordering
Insufficient use of forecast/poor forecasting
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

12. 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

13. Issues: Key customer demanding annual cost reductions
Analyst Experience
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

14. 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

15. How did we get those savings?
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 cost per unit produced decreased by 21.2%

16. Senior Analyst roles on this project were...
Analyst Experience
Senior Analyst roles on this project were...
Develop and manage the project plan and budget
Team facilitator
Training of team members and management
Interviewing
Data collection and analysis
Identifying sources of problems
Implementing changes
Presentations to management
Conceptual integration with existing systems

17. Andrew Ferreri AFerreri@thekeystonegroup.com
Contact Us
Please contact us with further questions, or to submit a resume to interview with Keystone.
Jennifer Tedrow
Andrew Ferreri
On campus interviews are October 27th.