Manufacture

Set a Clear Path Forward: If your manufacturing or operations finance department is experiencing planned or unplanned turnover, or if you have specific project opportunities related to supply chain optimization, labor planning, cost reduction, working capital management, throughput improvement, or product profitability analysis, we have the expertise to assist you.

Costing

Our services include the analysis and understanding of existing manufacturing processes, costing systems and methodologies, and cost center hierarchies. We evaluate key data capture points in each process to enable best practice analytics and decision-making support. Additionally, we examine the timing and process of cost roll-ups, ensuring that cost roll-up assumptions are current to maintain accurate product costs, such as labor and burden rates, machine hours, material yields, and planned scrap percentages.

We also analyze the sources and root causes of significant Purchase Price Variances (PPVs) of manufacturing materials and ensure the accurate and timely updating of Bill of Materials (BOMs) and Routers, coordinating the engineering change process among Manufacturing, Engineering, Purchasing, and Finance.

Furthermore, we analyze the drivers of over-under absorption to maximize product cost transparency and facilitate pricing/gross margin analysis and related decision-making support. Finally, we develop a robust process for evaluating make vs. buy decisions for purchased parts or outside processing.

Inventory Management

Conduct an analysis of inventory turnover to determine the optimal strategy for replenishment and inventory levels.

Evaluate the efficiency of inventory movement functions and transactions to ensure maximum throughput and visibility of stock. This includes receiving, movement to the stockroom or work order, recording, usage, order completion, and shipment.

Implement or review the effectiveness of a cycle counting program and year-end physical count to improve inventory accuracy.

Develop a workflow with the Purchasing department to optimize minimum and maximum inventory levels, safety stock levels, reorder points, and lead times.

Create relevant metrics to measure stock-outs, cycle count results, receiving efficiency and accuracy, and on-time shipments.

Supply Chain Analysis

Provide a comprehensive analysis of the supply chain to identify opportunities for streamlining operations and delivering products more efficiently. This includes identifying potential bottlenecks and risks to the supply chain, as well as developing strategies for improving resilience and flexibility to gain a sustainable competitive advantage.

Assess and mitigate potential risks in the supply chain, such as over-reliance on single suppliers, excessive concentration of assets or facilities in a particular location or region, and risks associated with foreign suppliers. Evaluate the manufacturing tiers within the supply chain and assess the potential risks of tier 2 and tier 3 suppliers.

Develop and implement key performance indicators (KPIs) to measure the reliability, responsiveness, agility, costs, and asset management of the supply chain. These metrics will provide valuable insights for optimizing supply chain operations and driving continuous improvement.

Manufacturing Systems and Process Analysis

Conduct a thorough analysis of the current state of manufacturing systems and framework to optimize available capacity and improve responsiveness to market conditions and challenges:

Assess the physical space capabilities and limitations of facilities, including plant layout, factory flow, and equipment layout, and evaluate potential expansion and renovation options.

Perform a line-by-line capacity analysis to determine the ability to scale production to meet projected growth and changes in product mix strategy.

Evaluate the capacity of existing equipment to meet growth goals and analyze the cost-effectiveness of refurbishment versus replacement. Determine the most efficient methods for material transfer within the facility, including raw materials and other ingredients to production lines, movement of finished products to shipping or storage, and identify potential automation opportunities.

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