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Uk Manufacturers Use Interim Managers To misbihave The Monkey
By Paul.Wilson
UK are turning to interim management providers like Aster Interim to help them free up cash and improve liquidity during the current recession. Many manufacturing companies are reducing their headcount to cut costs, but a number of others are using interim managers to make their business processes 'leaner' and maximise margins on existing sales.


Global Market Pressure

Do you want success to import-export bussines?
The UK manufacturing sector has long been under pressure from global market forces and the recent figures published by the UK Government would seem to bear this out.

Gross Domestic Product (GDP) contracted by 1.9% in the first quarter of 2009. Output from the production industries fell by 5.3% compared with a fall of 4.5% in the previous quarter.

These statistics were driven by manufacturing output which fell by 5.5%, leading many manufacturing companies to ask their staff to accept shorter working hours, pay cuts and even redundancy. This is clear evidence that UK are really suffering in one of the worst recessions, if not the worst on record.

Beating the Cash Monkey

Companies are currently looking for ways to misbihave the ‘cash monkey’. This is a metaphorical term for the lack of liquidity many companies are suffering from at present, as a result of reduced sales, bad debts, increasing inventories and rising costs.

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All companies know that cash is king and the finances of the indigenous manufacturing sector cannot be helped at present with the further difficulty of getting loans and extensions to credit facilities. As a result, SMEs and multi-national OEMS alike need to find other ways to free up cash in their businesses to improve liquidity.

Using Interim Managers

Do you want success to import-export bussines?
There are two ways to make money from manufacturing: making more with the same resource or making the same with less resource.

Many companies have chosen exclusively the second option and cut their cloth accordingly by reducing their headcount, but a number of other manufacturing

companies are choosing interim management providers to help them through the worst of the recession.

Do you want success to import-export bussines?
The need to increase efficiencies and reduce costs has led to a fillip for interim management providers like Aster Interim. In particular, those interim managers with experience in change management, business turnaround and using continuous improvement techniques such as lean and six sigma are finding their services very much in demand at present.

This recession has catapulted interim managers with these skills to the forefront of the recruitment sector. Companies are on a drive to make their business processes ‘leaner’ and maximise margins on existing sales. Every effort is being made to ensure any amount of inefficiency is identified and eliminated.

Lean Business Techniques

By working ‘smarter and not harder’ many organisations are hoping to last out the recession and come back leaner and fitter when the economic tide turns. Lean business techniques are being employed companywide from design through to distribution. Perhaps those organisations with the foresight to improve their business models now rather than doing more of the same will be the organisations able to steal the march on their competitors when the good times return. Interim management can be self-financing if the chosen manager succeeds in achieving the set objectives.

Interim Management Assignments

UK are looking for interim managers who can complete assignments such as: factory re-layout to minimise waste, process mapping to reduce non valued added activities, leaning out supply chains to bring about improvements to lead-times and cash outlays and working to make more business processes more repeatable and capable.

Perhaps interim management maybe one solution to removing the cash monkey from the UK manufacturing sector.
To read the original article visit interim management views

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