In collaboration with our customer and according to their specific needs, we designed a customized analysis approach for describing both capacity loading and the product cost impact. We ensured that this approach could be implemented across all production sites and offer comparable results and that the analyses could be carried out quickly using existing data.
The analyses were carried out on a very detailed level, by work orders, to reveal opportunities that could be overlooked if performance would be assessed only on a more aggregate, e.g. product level.
The detailed analyses were then complemented by building a versatile and interactive analysis tool that enabled business owners to view the results in different groupings, dimensions and levels of details that were relevant to them. We consolidated the results and drew conclusions and take-aways that offered valuable insights to capacity management, investment program planning and even areas beyond the initial scope of the assignment.
Ultimately, we handed over the analysis tool to customer’s experts’ independent use and further development by documenting it and providing hands-on training for every step of the workflow.
By looking deeper into the details for performance differences that were hiding within product-level averages, we were able to find and quantify in euros new and actionable opportunities. The results enabled quantifying some elusive assumptions on efficiency drivers, e.g. the cost difference and capacity impact of small producing small batches.
In short term these take-aways were helpful in calibrating the investment and operative plans to ensure capturing growth opportunities efficiently. In the longer term these findings highlighted opportunities that can be capitalized e.g. by adjusting pricing, service models, factories’ roles or operating practices. The findings can even enable pursuing profitable growth in price points where competitors are likely to find it hard to follow them.
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We help you improve customer profitability to achieve your profit targets by smarter pricing and better cost efficiency.
We help release cash from operations to finance your growth and strategic initiatives by optimizing your working capital.
Nordic management consulting company with offices in Stockholm, Helsinki, Gothenburg and Malmö. Our consultants have a wide competence base, working with Nordic as well as global assignments
Knowit Capacent Oy
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00100 Helsinki