Electronics: Operational Excellence, Business Transformation
Turning Around Loss-Making Manufacturing set-up
A diversified group offering integrated EMS solutions to Indian electronic products and consumer durable industry. One of their manufacturing divisions producing electronic components was perpetually loss-making since its inception. We undertook a one-year assignment to revive and transform operations into profitable venture. Within 6 months plant achieved break-even and subsequently perpetual profitability.
Business Challenge:
Un-able to identify problem-areas to revive operations and dilemma to continue or close operations.
Our Approach:
Our approach was to conduct operational audit to identify problems & evaluate product-mix and pricings
We analysed following problem areas
- Under-utilization of installed capacity
- Balancing of Equipment’s for optimisation
- Manpower to turnover ratio needed attention and
- Wrong product pricing
Our Recommendation
We Advised and Accomplished the following
- Ramp-up business to optimally utilise plant capacity
- Purchase of equipment’s to optimise operations
- Re-allocation and reduction of man-power for better efficiencies and cost reduction
- Helped negotiate and revise product-pricings with client’s customers
Result
A detailed data-driven assessment helped the Board achieve a clear and un-boased perspective of addressable opportunity and key success factors to enter and expand into the proposed business.