Scheid Diesel Service Co., Inc.
I would like to commend the work and efforts provided by your organization to Scheid Diesel Service Co., Inc. over the course of the last seven months, and particularly the work of your Group Leader, David Corso, and the Senior Consultant, Mike Lockey.
With the help of American Management Services, we have put in place key tools and processes to increase our level of profitability, team performance, and the accountability of our employees. Here are some of the key items that have implemented:
- We implemented a rolling eight-week cash forecasting process to plan and manage cash flow, including a credit collection policies that allowed us to significantly reduce uncollected accounts receivable and generate better cash flows.
- We completed a thorough review of our labor rates overall shop efficiency, making significant improvements is our scheduling and technician utilization and generating more billable hours.
- Utilizing the fully labored burden costs sheets, we were able to successfully increase our hourly shop rate and determine the overall margin requirements on parts sales to effectively cover overheads and generate profit.
- We implemented a weekly flash report and management meeting with key operating and performance metrics, allowing us to manage progress toward our targets.
- We developed a functional organization to improve our organizational performance and accountability, designating functional area leaders and process owners. Job descriptions including measures of performance were completed implemented, and a plan for future succession was put into place and implemented.
- A pay for performance plan for employees based upon the achievement of goals and targets that help both individual operating units and the company achieve its profitability goals.
- A predetermined profit plan that incorporated our process improvements and actions for profit is in place, allowing us to put strong management focus on achieving our targeted profit. Our monthly financial reviews now include analysis of key variances to our plan and corrective actions.
We expect the work described above to produce incremental operating profit to our company of more than $4.86 Million over the next three years, a benefit that far exceeds the cost of the program. Our expectations have been met in an efficient and professional manner and we will be happy to recommend the services of your firm and your consulting team to any prospective client.