Performance Improvement
A performance improvement is effected along the entire cost structure. Often, the levers identified in the process are mutually dependent, and require a concerted approach. Our in-depth industry know-how allows us to individually adapt the levers to the client’s market requirements and the competitive environment. A stringent management of measures and an ongoing monitoring of the progress of realization ensure the implementation.
Oliver Wyman disposes of comprehensive experience in various areas of operational performance improvement. Typical examples for measures are:
- Material cost reduction: Our purchasing experts negotiate prices, tighten the supplier portfolio, and restructure the collaboration with suppliers. Moreover, we examine alternative opportunities of in- and outsourcing, and implement them. These measures show rapid effects and a clear impact on the result.
- Optimizing the supply chain: Oliver Wyman offers a comprehensive program that – applied in collaboration with the most relevant suppliers - shortens production cycles, improves delivery reliability, and reduces logistics costs.
- Improving production efficiency: Together with the affected company, our experts optimize the division of work within the production network. Supported by tools like Lean Production or Six Sigma, quality and efficiency in manufacturing can be addressed simultaneously. In addition, we search the company for opportunities of making production more cost efficient – e.g., by standardization or modularization.
- Location optimization: The interaction of various locations and plants has often historically grown and is no longer seasonable. In these cases, a new inner-company division of work can distinctly lower the cost of logistics, warehousing, sourcing, HR, and administration. This also includes the specialization of locations, reduction of complexity, closing facilities, or relocating them to low-cost countries.
- Sales efficiency: Oliver Wyman offers several purely operational measures for sales improvement. Optimizing prices on the basis of test market scenarios enables a realistic optimum of price and volume. Sales optimization helps to secure the success of relevant sales activities. A customer portfolio analysis can achieve immediate effects by concentrating on profitable customers.
- R&D efficiency: As experts in R&D efficiency, particularly in the automotive industry and engineering, we review opportunities of reducing project delays, comb through the R&D portfolio for unprofitable projects, provide for a faster market introduction of products (Launch Management), and establish more efficient R&D processes.
- Reducing administrative costs: Classic “Minus-10-percent Programs” frequently do more harm than good. We downsize staff on the basis of differentiated benchmarks – but also with visual judgment and experience, introduce new management processes, and arrange for a reduction of indirect costs.
- Work efficiency: The factor “labor” plays an important role in corporate profitability. We introduce success-based salary components, reduce special payments, and support the enforcement of longer working hours.
