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Is your factory unable to make enough good parts to meet your customers’ demand, and is it causing serious problems? This is the most common reason why a factory turnaround becomes a must.

 

 
We have been involved in a number of similar situations and we usually need to follow a three step approach.

 

Getting production back on track NOW

Getting production back on track NOW

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.

Getting quality and capacity up to standards

Getting quality and capacity up to standards

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 CMC).

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.

Fighting margin erosion over time

Fighting margin erosion over time

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!

David C.
featured consultant

Turnarounds of factories are a very hard exercise. Change has to happen right away, amid resistance from different parts of the organization. Typical “consultants” with no real managerial background usually fail at this.

 

CMC Consultant David C

 

David has 25+ years of manufacturing experience in computer, automotive, aerospace, furniture, and chemical industries. He has set up, managed, and turned around a number of different plants.

 

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Industries
we serve

  Industry Experience

Our consultants have experience in the following industries: automotive, electronics, medical devices, aerospace, oil & gas, metal (die casting, machining…) and plastic , toys, furniture, food, battery & chemicals, and cut & sew.

 Areas of Operation

We mostly work in the following provinces: Guangdong (Shenzhen, Dongguan, Guangzhou, Shantou), Zhejiang (Hangzhou, Ningbo, Wenzhou), Shanghai , Jiangsu (Kunshan, Suzhou, Wuxi, Nanjing), Fujian (Xiamen, Quanzhou, Fuzhou).