Organisation Review for a Manufacturer of Stainless Steel Wires and Ball Bearing Rods

Automotive Management Consulting

Client Challenge

The client had multiple products with differing profitabilities, resulting in an unclear product mix decision. The client’s company had poor capacity utilisation and poor integration between their marketing, planning and production. There was an absence of a robust performance evaluation system and a lack of delegation of authority and responsibility.

Our Approach

UC Strategy adopted the following steps for this project:

  • Defined the vision and values of the company
  • Revamped the product classification system
  • Restructured the organisation around focused sub-plants
  • Identified the key bottlenecks and improved the capacity utilisation by operational
  • improvements in pickling process
  • Reduced set-up time for product changeovers by 54%
  • Decreased material movement by changing inventory storage locations
  • Setup daily/ weekly meetings to improve communication and productivity
  • Developed and implemented a performance evaluation system
  • Developed a PC-based production control system as an interim solution
  • Developed a comprehensive linear programming model that identified the most profitable product mix, given the capacity and demand constraints
  • Introduced a planning system that linked marketing, production, procurement and dispatch
  • Re-organised stores and defined stocking norms for key items
  • Developed a maintenance management system with preventive maintenance schedules

Our Impact

There was a 33 per cent increase in profitability possible due to the recommended changes in the product mix and also a 54 per cent reduction in the set-up time.