Most business people recognize that manufacturing is a critical function that directly impacts a company's cost position and its ability to meet customers' demands. But most executives believe their manufacturing operations are far from optimal. One of the reasons is that all too often managers focus narrowly on one element of manufacturing in isolation. Bain's approach is to look at manufacturing as part of a larger eco-system.
Specifically, Bain helps clients to:
Align the entire manufacturing operation to support overall business strategy
Understand the inter-dependencies between manufacturing and product complexity
Work out effective links between manufacturing and overall supply chain
Design the right plant footprint based on clients' commercial needs
Find the right sourcing for non-core activities
Achieve efficiency on the shop floor
In this way, Bain helps clients achieve the full potential of their manufacturing operations.
Comprehensive Diagnostic of Manufacturing Opportunities Watch this Bain & Company audio slide show on how to use a holistic diagnostic approach to achieve full potential of manufacturing operations.
Bain's broad-based diagnostic tools, which include benchmarking on key manufacturing metrics, visual inspections of plant operations, and a manufacturing survey that compares client's responses to those of High Potential Organizations, identify changes that will reap the largest payoffs and the best methods of achieving them. We help clients prioritize and implement improvements, ranging from product line complexity reduction to manufacturing practices that dramatically enhance productivity.
Bain has helped clients achieve significant improvements in their manufacturing operations in each of the following areas:
Quick hit cost reductions of 15-30% in the target cost area or department in first year, longer-term margin gains of 2-4%
CapEx avoidance of 20-50%
Capacity gains of 10-30% (at low/no cost) to meet growth demands
Lead times shortened by 50%, service levels gaps reduced by 30-50%
Ability to support increased customer choice (product complexity) without increasing costs
To find out more about Bain's work in this capability area, please contact the practice.
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