Winning at manufacturing in tough times

Within manufacturing, unlike in other sectors, companies need about 25% of their revenue as cash for running the business. But reduced equity positions force much more conservative risk management - to avoid breaching credit covenants. With many companies going out of business, creative destruction hits the industry - taking out the overcapacity and radically reshaping the corporate landscape. How to become a winner in this competitive arena?

1. Better utilisation of capital with adjustment of production capacity. PA restructured the operating, engineering, and purchasing functions of Inalfa Roof Systems delivering annual savings of 2% more EBIT margin.

2. Improving competitiveness and renewing the manufacturing strategy. PA established a new factory for Siemens with a saving of €1 million as well as realised a European manufacturing strategy for Stannah Stairlifts reducing cost and enabling growth with a payback of two years.

3. Performance improvement and cost optimisation. PA implemented cost control for Fiat trebling the annual value of cost-saving ideas to over €100 million and ran a cost reduction programme saving double-digit millions of euros across entire product lifecycle for Magna.

4. Supply chain excellence and customer driven supply. PA reshaped the global supply chain for MAN cutting time and resources spent on firefighting by up to 90% as well as developed a "shelf" driven supply for BAT to save £20 million in service failure costs.

5. New product development and introduction. PA developed an innovative solution enabling IMI Vision's heavy engines to meet emissions regulations. Recent PA survey shows; the more mature Lean NPDI practices the more likely new products are on time - to increase Lean NPDI maturity, product developers need to enhance their 'soft' skills.

PA supports these objectives particularly for automotive, consumer products and engineering sectors, working with management and staff to turn around clients' organisations. PA combines services, such as best practice costing, restructuring and turnaround for developing a strong manufacturing strategy.

To discuss how PA can help your manufacturing business thrive in this environment, please contact us now.