Due diligence is a critical step in any business investment.
When a client expressed interest in investing in a manufacturing company in Mexico City, we assembled a team of fractional executives with complementary skill sets and experience.
We set to work immediately, utilizing our collective knowledge to create a comprehensive report for the client.
First, we applied lean principles to assess the target company’s manufacturing processes. By analyzing their value stream and identifying areas of potential waste, we were able to identify recommendations that would increase efficiency and reduce cost
Next, we used the Six Sigma methodology to analyze the company’s quality control processes. By measuring defects and analyzing their root causes, we looked to identify areas for improvement that could help the company produce higher-quality products. We found that the manufacturer was impressively ISO9001-2015 compliant with documentation to validate.
Supply chain analysis was also a critical part of our due diligence process. By examining the target company’s relationships with suppliers and customers, and leaning heavily on my colleague Brian Snodgrass with Nitro Supply Chain we were able to assess their supply chain risk and identify opportunities for optimization.
Finally, the team’s manufacturing expertise allowed us to assess the target company’s overall manufacturing capabilities. By analyzing their equipment, processes, and personnel, we were able to provide the client with a thorough understanding of the target’s operations and their potential for growth and improvement via the proposed plan to scale.
Together, with the support and insight from my colleagues, David Baughman with Fractional Executive Solutions and Vicki Baughman with FES Bookkeeping, we compiled our findings into a detailed report that provided the client with a comprehensive assessment of the target company’s operations, as well as recommendations for improvement.
In conclusion, our combined experience as a seasoned operations executive, along with the team’s expertise in Lean principles, Six Sigma, supply chain, and manufacturing, allowed us to provide a valuable service to our client. This due diligence process provided the client with the information they needed to make an informed investment decision, and our objective approach to gathering intel provided our client with a thorough document on which to base their investment decision.