Cases

Defining an Organisation Review for the Watch Manufacturing Company

Challenge

The client, a watch manufacturer in India needed an organisation review to further grow its company. The client turned to UC with the following challenges:

  • Lacking a clearly defined business strategy
  • Mismatch between customer requirements and products displayed leading to lost sales (20% of annual sales)High raw materials inventory
  • High staffing levels
  • High overheads
  • Lack of accountability and communication
  • High carry forward losses

Our Approach

To develop the organization review for the client, UC adopted the following approach:

  • Defined the need for a strategic focus on exports and identified buyers for excess machine capacity
  • Implemented a Microsoft-Excel based ‘Material Planning Tool’
  • Reduced raw materials inventory by 54% from its previous levels
  • Restructured organisation into focused factories and decentralised planning, purchase, inventory, maintenance and quality control
  • Reduced managerial staff by 30 %
  • Reduced overheads by 25 % by reducing one shift, power, transport, rent and communication expenses
  • Implemented a cash management system to monitor and manage cash on a daily basis
  • Created detailed job descriptions for each position in the organisation structure and staffed personnel accordingly
  • Redesigned rewards system based on the evaluation systems
  • Developed Key Performance Indicators and a comprehensive performance evaluation system for upward, downward and peer evaluation.

Impact

As a result of UC initiatives, the client received a restructured organisation along with an annual recurring savings of Rs 58 Lacs, one-time savings of Rs 11 lacs and notional recurring savings of Rs 11 lacs per annum.