Cases

Organisation Review for an Automobile Castings Company

Challenge

The client, an auto castings company, did not have clearly defined visions and values. It had poor profitability of and an under-utilisation of capacity due to high downtime at a retail store (bottleneck). There were high rates of rejection for its products as compared to the industry standard. They had high inventory levels due to non-moving inventory and an absence of stocking norms. Other problems were a lack of clarity regarding job responsibilities across the company, low morale of employees and a lack of information systems.

Our Approach 

UC reviewed the organisation and submitted a report with observations and recommendations, after taking the following steps:

  • Defined the visions and values for the company. Translated the vision by setting targets for each business process
  • Restructured the organisation around focused work-centres
  • Identified the key bottlenecks and improved the capacity utilisation through set up time and maintenance downtime reduction
  • Defined stocking norms for critical raw materials
  • Redefined systems and procedures for the stores and purchase departments
  • Developed a maintenance system with preventive maintenance schedules
  • Defined consumption norms for spares and consumables
  • Defined the organisation structure, job descriptions and performance evaluation systems
  • Prepared the increment system based on the performance evaluation system
  • Prepared a management information systems report.

Impact

Following UC’s recommendations the client improved their profitability from 3.82% to 21.4 % in a year. They also increased their capacity utilisation by 14.94 % and reduced setup time at the Shell core shop and market rejections.