A Diagnostic Review for the Manufacturer of Stainless Steel Products

Client Challenge

The company had been incurring losses for a period of two years due to a recession in the steel industry and thanks to the imposition of a ban on exports, by the European Union. The company’s operating performance had been deteriorating for the previous six months. There was an increase in debt and rising interest/the PBIT ratio resulted in a shortage of working capital funds. There was high non-productive time on the shop floor.

The company lacked a formal planning process and system, a lack of clearly defined processes in procurement and order fulfilment, and no coordination between various locations. Job responsibilities across the organisation were unclear. There was low morale of employees across the organisation and no reporting relations in the organisation

Our Approach

UC Strategy conducted a diagnostic review and identified improvement opportunities in the following areas:

UC Strategy delivered their diagnostic review and several areas the company can improve in

  • Operations
    • Identifying and de-bottlenecking in manufacturing
    • Designing and implementing standard operating procedures for procurement, order management and dispatch processes
    • Designing the planning cycle
    • Organisation
    • Designing and implementing organisation structure
    • Defining job descriptions for key positions
  • Recommended operations initiatives
    • Identified initiatives to reduce the non-productive time (reducing set up time, maintenance downtime etc.) which would result in increase in revenues by ₹10 Crore
    • Implementation of the initiatives
  • Designed and initiated the implementation of the following processes
    • Procurement process
    • Order management process
    • Dispatch process
    • Designed a planning tool to ensure coordination and proper planning across locations
  • Designed and implemented the organisation structure and job descriptions

Our Impact

UC Strategy delivered their diagnostic review and a report with respect to the scope of improvement within their processes.

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