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Export Plan
Q1 2026 Goal
Gap to Goal
$780K
3 months remaining
Your Roadmap to$2.1M EBITDA Improvement
Discover actionable, data-driven recommendations to recover your margins in 12-18 months
Quick Wins: Start Here
Top 3 priority actions driving 75% of total impact
Materials & Supplier Cost Reduction
OEE Recovery Program
Quality & Defect Reduction Initiative
Ready to get started? These three initiatives will deliver 75% of your total EBITDA improvement opportunity.
MedTech Solutions Inc • Medical Equipment Manufacturing
EBITDA Recovery & Improvement Plan
From 12% to 18% Margin in 24 Months
Current Situation
$20M revenue medical equipment manufacturer saw EBITDA margin fall from 15% to 12% (20% decline) due to material cost inflation, doubled scrap/rework rates, OEE deterioration, and aggressive discounting on new flagship product. Board mandate: Recover to 15% in Year 1, reach 18% in Year 2.
Root Causes of Decline
- •Gross margin erosion: Materials 30% → 33% of revenue, scrap doubled to 4%
- •OEE decline: 72% → 66% from changeover complexity and deferred maintenance
- •Pricing discipline: Promotional discounts became permanent, exception deals proliferated
- •SG&A creep: Headcount grew faster than revenue (21% → 22.5% of revenue)
Improvement Strategy
- •Year 1 (15% margin): Materials reduction, OEE recovery, quality fixes, pricing discipline
- •Year 2 (18% margin): Advanced OEE + automation, product mix optimization, operating leverage
- •Key levers: GM recovery, OEE 72% → 75%, defects 4% → 1.5%, RPE $305K → $355K
- •Financial impact: EBITDA $2.52M → $4.41M (+$1.89M, +75%)
Current EBITDA
$2.52M
Down 20% from baseline
Current Margin
12.0%
Down from 15% baseline
Recovery Potential
$1.89M
To 18% margin (Year 2)
Year 1 EBITDA Recovery Bridge
From $2.52M current to $3.30M target (15% margin)
24-Month EBITDA Recovery Trajectory
Path from baseline through decline to Year 1 recovery (15% margin)
Year 2 Roadmap: From 15% to 18% EBITDA Margin
After stabilizing operations and recovering to 15% margin in Year 1, Year 2 focuses on excellence and leverage to push EBITDA to 18% ($4.41M).
Operational Excellence
- •OEE → 75%: Extend program to 2nd line, add partial automation (-10% labor hours/unit)
- •Defects → 1.5%: Routine root cause analysis, engineering changes, supplier corrective actions
- •Materials → 30.5%: Further cost-down work, continued supplier optimization
Revenue & Mix Optimization
- •Product Mix: Launch consumables/services, +15-20% recurring revenue per system
- •SKU Rationalization: Sunset low-margin variants, simplify portfolio
- •Operating Leverage: Grow to $24.5M revenue with 69 FTEs (RPE $355K)
Execution Discipline
- • Strong program management across multi-workstream initiatives
- • Cross-functional coordination: Ops, Engineering, Procurement, Sales
- • Weekly tracking of OEE, defects, materials, pricing metrics
Change Management
- • Operator buy-in for standardized work and SMED procedures
- • Sales team training on value-based selling and approval discipline
- • Engineering focus shift to roadmap and cost-down projects
Investment Readiness
- • Capital for SMED tooling, automation ($200-400K Y1, $800K-1.2M Y2)
- • Marketing investment in clinical evidence and value messaging
- • Consumables/service package development and regulatory work
Scenarios & Analysis
Explore EBITDA recovery scenarios, causal relationships, and what-if analysis
Scenario Comparison
Side-by-side view of your EBITDA recovery journey
Current State
EBITDA deteriorated to 12% due to material inflation, OEE decline, and quality issues
Year 1 Target
Recover to baseline 15% EBITDA margin through materials reduction, OEE recovery, and quality fixes
Year 2 Target
Advanced improvement through automation, product mix optimization, and operating leverage
Key Insights from Comparison
Focus on Quick Wins: Materials cost reduction, OEE improvements, and quality fixes can deliver +$0.30M within 6-12 months.
Build on momentum with Strategic Initiatives: Product mix optimization and automation investments push total gains to +$1.41M.
Year 1 targets have 85% feasibility based on industry benchmarks. No major capital required—mostly operational improvements.
Start with high-confidence actions in Year 1. Monitor progress quarterly and adjust Year 2 plans based on actual results.
Recommended Implementation Path
Current → Year 1 (Months 1-12)
Focus on operational improvements: supplier negotiations, OEE recovery, quality control, pricing discipline
Year 1 → Year 2 (Months 13-24)
Scale successful initiatives + strategic investments: product mix shift, automation, recurring revenue models
Sustain & Optimize (Months 25+)
Embed improvements into standard operating procedures, continuous improvement culture, prepare for exit/growth
Interactive "What-If" Analysis
Adjust 7 key operational metrics in real-time to see their projected impact on EBITDA. The causal AI model calculates the financial outcome instantly based on validated elasticities.
Adjust Metrics
Projected EBITDA
Impact Analysis
12-Month Projection
How It Works
This interactive tool analyzes relationships between operational metrics and EBITDA outcomes. Adjust the sliders to explore different scenarios and see their immediate financial impact. Confidence levels reflect the strength of each metric's influence on EBITDA based on historical data analysis.
Action Plan
Detailed recommendations, quarterly roadmap, and key objectives & results
Prescriptive Recommendations
Seven actionable initiatives with detailed analysis, action plans, and implementation roadmap to drive $2.1M annual EBITDA improvement.
Total EBITDA Impact
Active Initiatives
EBITDA Impact by Initiative
Annual EBITDA improvement in thousands of dollars
Detailed Initiative Analysis
Materials & Supplier Cost Reduction Program
Gross Margin - Materials
Launch focused sourcing program on top 20 components by spend to reduce material costs from 33% to 31.5% of revenue.
OEE Recovery Program: Changeovers, Downtime & Performance
Manufacturing Excellence - OEE
Implement comprehensive 6-month OEE improvement program on critical production lines to recover from 66% to 72% (Year 1) and push to 75% (Year 2).
Quality & Defect Reduction Initiative
Quality - Scrap & Rework
Drive scrap/defect rate from 4% back to 2% (Year 1), then to 1.5% (Year 2) through root cause elimination, error-proofing, and operator training.
Pricing Discipline & Discount Control
Commercial - Pricing
End permanent promotional discounts on flagship product and institute discount approval gates to recover average selling prices and improve gross margin.
SG&A Optimization & Spending Discipline
OpEx - SG&A
Reduce SG&A from 22.5% to 21% of revenue through headcount discipline, low-ROI spend cuts, and productivity focus.
Product Mix Optimization & Recurring Revenue Growth
Product Strategy - Mix
Shift product mix toward higher-margin consumables and service packages; prune low-margin SKUs to improve blended gross margin.
Revenue per Employee (RPE) & Operating Leverage
Productivity - RPE
Grow revenue faster than headcount to improve operating leverage. Target: $315K RPE (Year 1), $355K RPE (Year 2).
Total EBITDA Recovery Potential
Annual improvement from all 7 strategic initiatives
Portfolio Intelligence
Multi-entity causal benchmarking & best-practice transfer
NuStep Medical
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Meridian Plastics
Industrial Plastics
Vertex Automation
Industrial Automation
Best Practice Transfer Engine
Decision Provenance Chain
Full audit trail: Query → Causal Path → Outcome → Validation
"What if we improve OEE from 72% to 80%?"
--- • Model v3.2.1
"Impact of reducing defect rate by 2%?"
--- • Model v3.2.1
"What caused the Q4 margin decline?"
--- • Model v3.2.1
"Increase line speed to 130 units/hr"
--- • Model v3.2.1
CausalLedger™ Audit Trail
Immutable record of all decisions with cryptographic provenance (Claims 36-40)
What-If Scenario: +2% Gross Margin
Accepted recommendation
AI Query: Top EBITDA drivers
Viewed analysis
How It Works
CausalBeacon uses advanced AI to analyze your operational and financial data, identifying which metrics causally drive EBITDA. Our platform quantifies the impact of each lever, helping you prioritize initiatives that matter most.
Key DifferentiatorCausal AI, Not Correlation
Our ApproachProven Process
Key Operational Drivers
Our platform analyzes relationships between operational metrics and EBITDA, including: