Tiers 1 & 2
(including on-site paint shops)
One thing cannot wait: increasing the number of quality products the factory is shipping. The current situation is costing you a lot of money (sending products by plane, expediting some production batches…) and you might lose significant business from an important customer.
We first study the situation and decide what is the main cause of the issues — for example a poor process control system, poor maintenance, ineffective testing, insufficient equipment and workforce, and so on.
Once production is back on track, other fundamental gaps need to be addressed — usually working on quality improvements and a process improvement plan (see the presentations of these other practice area of MTG).
Quality and capacity also depend greatly on what the component suppliers are delivering. We often see severe quality issues coming from suppliers, as well as inappropriate supplier management on the part of the purchasing department.
Once the pressing issues have been addressed, it is time to ensure the factory is well organized and positioned for profitable growth in the future. Is the amount of workers adequate, and should we re-engineer some processes? Are planning and purchasing supporting production efficiency? What other wastes can be taken out of the business?
Turning around a factory in China is a very hard exercise. It is a lot of work. Prioritization is key. Consultants typically have to manage the sensitivities of several parties, and need to know when and whom to push. But we have delivered good results to several clients in similar situations in the past. It is possible!
