
Textiles
The project for client ‘Y Plc’ was conducted
over an eighteen-month period and involved working at four locations,
in three discrete operating units.
The brief was to:-
- Consolidate the Structure of the group, with a clear focus
on Cost Reduction
- Reduce the Cost of Quality through improved design, development
and construction and the careful application of appropriate monitoring
and control systems
- Develop the Culture of the organisation, to better match the
needs of a growing Plc.
The business units produced dyed wool and polyester yarns, dyed
knitting wools and yarn dyed and piece dyed wool and polyester worsted
cloth.
Structure
The Overhead Value Analysis which was conducted,
identified significant opportunities for the elimination of non-value
added functions and positions, via a programme of work take out and
functional consolidation. This involved the dissolution of the individual
company boards and the formation of a new group executive responsible
for the management of the streamlined operations.
Working with a client task force, consultants systematically reviewed
all non-core activities, including Sales, Design and Development and
Finance and Administration. New organisational structures were developed
around new or modified working practices and were implemented progressively,
leading to a cost saving of > £650,000pa.
Quality
In parallel with this exercise, new policies and working
practices were being agreed, with the objective of rationalising the
wide product range, focusing the sales and marketing effort.
The product approval process was revised so as to ensure that only
profitable and manufacturable products made it into production and
the conversion ratio of new designs to production increased. Further
savings of around £ 750,000pa were achieved as a result of the
implementation of these initiatives.
Culture
Bringing three separate companies together, under one management executive,
was the most challenging and difficult aspect of the project. The
group was itself in a state of flux, having only recently made the
transition from a family business to a Plc.
The traditions of the textile industry are deep-seated and culture
change takes many years to become embodied within an organisation.
Our concentrated management development effort was designed to inject
new thinking into the hitherto traditional attitudes to business management.
As a result of the project, the foundation was established to support
the growth aspirations of the Plc board and its shareholders.
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