Case: Grow with existing capacity

    About the company

    • Industry: Production and sales of specialized and quality-sensitive B2B products
    • Markets served: Global
    • Operations footprint: Multiple and partially connected production sites in different countries

    Challenge – Capacity becoming a bottle neck for growth

    Asset 115
    Our customer was experiencing a strong demand growth for their products. Additionally, they were in the process of revising core technologies used in their products and managing the product portfolio transition from old to the new one.
     
    Both these changes were putting their capacity, and the ability to sustain customer service levels under a strain. To mitigate this strain, they were already in the process of planning capacity investments.
     
    In order to validate and adjust the investment plan, our customer asked us to assess the current capacity loading and provide priorities for investment planning and take-aways how current capacity could be utilized more efficiently until new capacity becomes operational.

    What was done – Reveal opportunities hiding in details & full hand-over to customer

    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.

    Results – Actionable and valuable opportunities hiding within product-level averages

    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.

    Contact us

    Shall we help you with your growth too? Send us a message and let's talk more!

    Case grow with existing capacity

    Our services

    Customer profitability Management

    Customer Profitability Management

    We help you improve customer profitability to achieve your profit targets by smarter pricing and better cost efficiency.​

    Working Capital Optimization - Capacent

    Working Capital Optimization

    We help release cash from operations to finance your growth and strategic initiatives by optimizing your working capital.

    Supply Chain Management - Capacent

    Supply Chain Management

    We help you turn your Supply Chain into a competitive advantage.