Defining a Diagnostic Review for a Modular Furniture and Industrial Storage Systems Manufacturer
Background and Challenge
The client, a group manufacturer of modular furniture, steel furniture and industrial storage system (ISS) products made of particle board, MDF board and steel, with manufacturing plants at Ahmedabad and Silvasa, had the following issues within its company:
- The marketing office in Mumbai promoted office products of both the companies whereas there was unhealthy competition between the group companies in Ahmedabad
- High competition from local as well as international players
- The steel furniture and ISS manufacturing was operating below break-even capacity due to lack of demand
- The cost of operations and customer demands for newer designs have been increasing steadily.
The top management turned to UC to understand key issues facing the organisation, and to draw up a plan to overcome the existing weaknesses and ensure future growth.
Approach and Recommendations
To define a diagnostic study for the client, UC adopted the following approach:
- Analysed the past performance of the group companies and understood the top management’s aspirations and plans
- Interviewed employees to understand the internal and external perception of the organisation
- Conducted a brief primary research with customers, architects and interior decorators to understand the customer feedback and market for modular furniture and industrial storage systems
- Understood domestic and international trends in the modular furniture and industrial storage industries
- Studied competitive scenario and profiled key competitor strategies
- Conducted ‘best practice benchmarking’ of various processes
- Identified and prioritised key organisational and strategic issues
- Recommended the definition of a ‘business strategy’ to define the future direction of the group
- Prepared an implementation plan and developed tool kits to support the implementation initiatives.
The client received an implementation plan indicating operational, people and technology initiatives, and time frames for the completion of the same.