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CMTC Supports Thriving Family Business for Innovation & Growth
With the help of: California Manufacturing Technology Consulting (CMTC)
About
Esperanza’s Tortilleria is a manufacturer of tortillas, tostadas and corn chips. The family business started in 1962 and since then the founders have successfully created a thriving family business serving the local community, raised their family and supported their children’s college educations. The company also operates a Mexican food deli/retail store adjacent to the manufacturing building.
The Challenge
The founders of Esperanza’s Tortilleria were transitioning to retirement and passing responsibility for the business to their three sons.
CMTC has been extremely helpful in Esperanza's Tortilleria's desire to become a more efficient company. They helped put modern policies and procedures in place. They also helped us to define duties in clerical areas to conserve time so that staff can be used in other areas to complete other tasks. All in all, CMTC has been a breath of fresh air to Esperanza's Tortilleria.
MEP's Role
During this transition the company continued to face a lot of local competition, low margins, high labor costs, and an increase in minimum wage. The founders had always handled the finances and believed that it was time for their sons, as the next generation of owners, to better understand the company’s financials. The company also needed a plan to decrease waste and bring in automation, but the management team lacked backgrounds in accounting, finance or lean operating practices, and agreed that they needed assistance with calculating job costing, manufacturing labor burden rate, costing/profit analysis and business financials. Management knew this process would inform better decisions leading to increased operational performance.
California Manufacturing Technology Consulting (CMTC), part of the MEP National Network™, started work with Esperanza’s Tortilleria in December of 2018 to provide financial consulting services to address the organization’s current situation. This consisted of the following: financial consulting; business coaching in accounting and business operations to enhance the efficiency and profitability of the business; providing office administration staff with best practices to improve performance; providing CFO advisory assistance in the areas of budgeting, forecasting and financial controls; and providing owners & management team with clarity on business performance