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  Case Study - Turnaround Heat Pump Manufacturer
Starting point
After an initially good start, a company specialised in renewable energy has to face financial problems. Despite a good product and enough customer orders, it achieves only insufficient margins. As capital base decreases very rapidly, a refinancing in the next 2 or 3 months seems inevitable. Management problems intensify the situation in addition and despite great efforts, the situation deteriorates.
After a short analysis phase, the problem of a missing gross margin in the defective standardisation is recognised. A 5-point action plan is developed and the implementation is started immediately.
bloechlinger engineering temporarily assumes the responsibility of the management.
A standard product portfolio is defined and bindingly implemented at the frontend (sale) within 2-3 weeks. Standard and special orders are strictly separated, the calculation of the latter is realized properly with "cost plus".
The control software is now internally created (technology insourcing) and standardised, too.
For the performance measurement, a job-order costing (real time) is being introduced.
Already in the second month, the negative development can be stopped and the gross margin increases from - 4% to 40%. The standardisation and the creation of the software permit additionally shorter delivery times and a higher adherence to delivery dates.
In a second phase, the continuously successful growth of the company is secured with a new marketing concept as well as a selective reinforcement of the management and the experts. In einer zweiten Phase wird mit einem neuen Vertriebskonzept sowie punktueller Verstärkung des Managements und der Fachspezialisten die Basis für das weitere erfolgreiche Wachstum des Unternehmens gelegt.


bloechlinger engineering AG
Laurenzenvorstadt 103
CH-5000 Aarau

Tel.: +41 (0)62 822 01 90
Mobile:   +41 (0)79 506 55 83