Overview: Manufacturing

In response to continuous changes, the company should constantly adapt its strategy and optimize the utilization of its industrial tools

How can we develop the production ecosystem to suit the environment, while maintaining the best level of performance?

Context

Companies need to regularly review their core business to take into account factors such as new technologies and the skill development of suppliers. It is also essential for them to regularly review their manufacturing strategy, based on variations in production costs and the evolution of consumer markets.

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Although Lean Six Sigma initiatives have become increasingly common, their results do not always live up to expectations. Often, these initiatives do not include everything necessary for the transformation. Combined with changes in management, this makes it impossible for the company to sustain its target performance levels. Furthermore, if the initiative focuses on immediately productive activities, the efficiency of support functions may be overlooked.

This confirms that manufacturing is still a relevant subject that needs to be revisited on a regular basis.

Challenges

Regardless of environmental developments, manufacturers must have the answers to three key questions:

  • Which products should be manufactured in-house (strategic importance vs relative competitive advantage)?
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  • Where, and in which manufacturing tool, should production be located to optimize sometimes conflicting performance levers (cost of labor vs client proximity, one piece flow vs production line flexibility, etc.)?
  • How can production be made as efficient as possible (operational excellence, support function efficiency, management assistance tools)?

How can Argon Consulting help you?

  • Make-or-buy decision: What is the best level of industrial integration, taking into account the "strategic" nature of the competitive differential between internal and external production and the capacity/control of potential suppliers at various cost stages?
  • Manufacturing strategy: How can the structural positioning of production units be improved in terms of geographical location, size, production technology, and product range?
  • Lean Manufacturing, with support from our Black Belt teams
  • Increased manufacturing productivity, including new productivity initiatives, optimization of cross-functional processes, and mobilization and skill development of teams
  • Efficiency of support functions (Procurement, Quality, Maintenance, Logistics, etc.), which still have significant potential for improvement
  • Choice and implementation of Computer-Aided Production Management (CAPM).

 

 

Case Studies

Identify the paths of improvement of industrial performance for an automotive equipment supplier