Operational Due Diligence

Operational Due Diligence Assistance for Consolidations and Acquisitions

Complementary to and not a replacement for traditional finance focused due diligence, CPQP Operational Due Diligence assistance takes an in-depth look: data collection, analysis and assessment of the following areas. Once done, a much more complete picture is presented, allowing management to make sound consolidation (or expansion) decisions based on data and analysis of a manufacturer’s operations. CPQP gathers these data from all available sources – usually on site – and provides expert analysis in an easily understood format. Then, a manufacturing plant relocation decision can be made based on data.

Org chart, Strengths / Weaknesses, Contract employees, Open positions, Appraisals
Sales and Marketing
Organization ( S / W ), Market strategies, Growth Strategies, Systems, Procedures, KPIs, Key Customers : Status – Pareto distribution – Volume – Growth – PO / Contract – On time delivery – Quality- Warranty, SKU sales distribution, Lead time, Innovation, Voice of the Customer, Joint Ventures
Organization ( S/W ), Systems (CAD, FEA, ….), Knowledge assessment, Procedure & documentation, records, Testing- laboratory-data collection, Innovation assessment, Patents, Collaboration with Universities, -Cost reduction Initiatives and systems, New product introduction process, Engineering change process including obsolescence management, BOM-routing- costing, Manufacturing engineering, Industrial engineering, Manufacturing documentation- procedure- work instructions,-gap analysis
Organization ( S/W ), Equipment- list-condition-calibration…, ISO, -Internal & external quality, Warranty, Software, Process capabilities, Tooling
Tooling/Tool Room
Organization ( S/W ), Maintenance, Quality, Spare parts, Records, cost, Procedures, KPI’s
Organization(S/W ),-Knowledge assessment, Equipment up time or OEE, Procedure, records, Spare parts, Maintenance and repair costs
Organization ( S/W ), Knowledge assessment, Lean manufacturing assessment, On time, KPI’s, Cycle time, Value Stream Maps (software based)
Human Resources
Organization ( S/W ), Job openings, recruiting methods, average time to fill, Union:-contracts,-grievance-arbitrations, Wages distribution, Work force- demographic-age distribution, Perception of management and relationship with management, absenteeism, turnover
Organization ( S/W ), Key Suppliers-volume ( $-SKU-Pieces)-on time delivery-price reduction program- quality-innovation- manufacturing processes difficulty- internal quality, ERP system- what- utilization-knowledge- revision- maintenance, PPV, Procurement strategy-domestic/ import,-Low Cost Region, sub-contractors- contracts-quality,-cost reduction program- innovation …., inbound/ outbound logistics- cost- strategy, inventory- $- accuracy-turns- obsolete- scrap…low turning
Information Technology
Organization ( S/W ),system:-what- age- contracts- maintenance….technology, software, network, phone/communication, use of WWW
Manufacturing & Plant Equipment
Book value vs. replacement value assessment, quality and condition, up time, utilization or OEE, age, budgeted repairs, non-budgeted necessary repairs
Environmental & Safety
Organization (S/W ), policies, procedures, reporting system, records, assessment, -OSHA citations, accidents / insurance rating / cost
Operational Budgets, Spending, & Reports
Review of department budgets, spending and variances, assess reasons for variances
Finance & Control
Organization( S/W ), procedures, records, Assessment of managerial assistance to the organization