Global manufacturer of production systems: Potentials analysis
Global manufacturer of production systems: The client had an earnings gap of $100 million and required restructuring to drive lasting improvements in earnings and competitiveness. Oliver Wyman devised and coached a global program on the basis of a potentials analysis. Project modules included internationalization of key account management, specialization and resizing of plants, a worldwide division of labor, global strategic sourcing, modularization and standardization of products, and modern logistics and assembly processes. With Oliver Wyman’s help, the company filled its earnings gap of $100 million within three years as planned. Each plant was resized, reducing staff by as much as 25% in some plants and increasing cycle times by up to 50%. All critical processes were reorganized in a worldwide division of work, the global organization focused on key account management. All critical processes were reorganized worldwide, and responsibility for core functions (e.g., key account management) was assigned.
