Experience

Cases

News

Optimization of Operational Expenses

Situation

  • A large Russian producer of specialized machinery was looking for ways to increase productivity and optimize operational costs

Goal

  • To conduct diagnostic analysis of productivity at one specific plant
  • To assess the potential to increase efficiency and identify measures to realize this potential

Our approach

  • Conducted an express diagnostic analysis of productivity at the pilot plant (producing winches) which allowed study of:
    • The balance of how productive power is distributed and converted
    • How efficiently equipment is used
    • How efficiently labour is deployed
    • The effectiveness of quality control systems
    • The effectiveness of repair management systems
  • The potential to increase labour productivity and reduce operational expenses was assessed and quantified, and measures to achieve the identified potential were created

Results

  • The potential to increase productivity by 30% and reduce human resources costs and raw material expenses by 5-10% was identified
  • Was recommended a complementary implementation plan for the developed measures

 

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