Operational Excellence in Manufacturing

Achieving better efficiency and improving quality, from the shop floor and across the lean manufacturing network

Operational excellence in manufacturing means applying lean manufacturing techniques to improve business operations and achieve long-term growth and profitability. It’s more of an imperative than ever. In today's competitive landscape, excellence in production processes is crucial for sustainable growth. At PwC we specialise in crafting tailored strategies to optimise your manufacturing resources.  

From refining your manufacturing footprint to enhancing operational efficiency and embracing digitalisation, we provide the insight and guidance you need to align your operations with business goals. We empower your business by focusing on strategic positioning, continuous improvement and data-driven decision-making to increase efficiency, reduce waste and improve product quality.  

Partner with us to unlock the full potential of your manufacturing system to achieve customer satisfaction and drive success in the dynamic marketplace.

Here’s how we can help

Today’s bumpy and evolving geopolitical landscape, coupled with many other external disruptions, severely test companies’ manufacturing networks and expose them to a great deal of uncertainty. Our Operational Excellence in Manufacturing service is designed to optimise your production processes and drive sustainable growth, giving you flexibility and resilience. Our multidisciplinary methodology blends strategic insights with advanced technology and industry-specific expertise to deliver tailored solutions that enable our clients to maximise their manufacturing capacity and ensure continuity.

Our team will work closely with you to analyse your current manufacturing structures, identify inefficiencies and develop optimised strategies. Drawing on our extensive network of specialists in operations, technology and quality management, we provide holistic solutions that yield tangible results.

From refining manufacturing footprints to enhancing operational excellence and embracing digitalisation, we employ a data-driven approach to increase efficiency and productivity, reduce waste and improve overall performance.

Contact us

Our capabilities

Manufacturing Strategy

We give you the insight and guidance you need to decide on a long-range plan allowing you to use the resources of your manufacturing system to support your business. Our work focuses on enabling you to achieve your desired manufacturing structure and infrastructure and a set of specific capabilities.  

Continuous improvement: We are consistently analysing market trends, customer demands and technological advancements. This allows us to adapt our strategies in real time, ensuring that we remain agile and responsive to the industry.

Tailored optimisation: We focus on developing customised approaches across manufacturing footprint, operational excellence and digitalisation. By tailoring strategies to the specific needs of our clients, we help them not only enhance efficiency but also maintain a competitive edge in the market.

Resilience and best practices: A central element of your strategy is proactively tackling challenges related to efficiency, cost control, quality management and technological advancement. By addressing these hurdles head-on, we help you position yourself to not only overcome obstacles but also to thrive amidst competition.

Investment in automation: Embracing automated systems and robotics is integral to augmenting your workforce capabilities and boosting productivity. We help you mitigate the impact of labour shortages and ensure operational continuity by investing in cutting-edge technology.

Skills development programmes: Your commitment to employee growth is evident through comprehensive training and development initiatives. By offering opportunities for skills enhancement, you empower your workforce to adapt to changing demands and bridge skill gaps effectively.

Flexible work arrangements: Recognising the importance of attracting and retaining talent, you offer flexible working arrangements and competitive remuneration packages. This not only addresses labour shortages but also fosters a positive work environment conducive to employee satisfaction and retention.

Adopt eco-friendly practices: You integrate eco-friendly production technologies and processes throughout your operations. This proactive approach reduces your environmental footprint and aligns with your commitment to sustainability.

Resource optimisation: Optimising the use of resources is a key aspect of your environmental strategy. By minimising waste generation and energy consumption at every stage of the manufacturing process, you contribute to environmental conservation and efficiency.

Green supply chain initiatives: Your commitment to sustainability extends to your supply chain practices. Through sustainable sourcing, transportation emissions reduction and robust environmental management, you promote environmental stewardship and compliance across your operations.

Manufacturing Footprint

We help you position your production units in terms of geographic location, size, production technologies and product range. We then collaborate with you to build a plan taking account of your commercial strategy, including the relevant markets, volumes and products.

There are many benefits to reshoring, including:

Reduced transportation costs: When manufacturing is done domestically, the costs and time associated with transporting goods internationally are significantly reduced. For example, car manufacturers like Tesla benefit from reshoring by producing cars closer to their main market, reducing logistics costs and time.

Quality control: Reshoring allows closer oversight and higher control over production processes, ensuring a consistently high-quality product. Apple, for example, has brought some of its manufacturing back locally to tightly control the quality of its products.

Speed to market: Domestic manufacturing can significantly reduce the lead time from production to market, allowing quicker responses to market changes. When faced with sudden demand for ventilators during the COVID-19 pandemic, many companies were able to pivot and produce them domestically, demonstrating the agility of re-shored manufacturing.

Local job creation: Reshoring can stimulate local economies by creating jobs.  

Expect this trend to continue as companies look to become more resilient and less vulnerable to global crises that impact their supply chain.

Manufacturing disruption is every manufacturer’s worst nightmare. You can work to avoid it by analysing risk and managing supply chains.

Less wasted time: Identifying and addressing disruption leads to less wasted time. This will enable you to know where to focus your efforts and when to admit that a particular element is beyond your influence.

Added flexibility: When uncontrollable production disruption does happen – beyond your business continuity plans – you need to be prepared. We prepare our clients to quickly, efficiently and effectively clear up their other shop floor issues, giving them the flexibility to problem-solve when something unexpected happens.

Improved resilience: We help our clients identify the key points of failure and supply disruptors to allow them to eliminate inefficiencies, get the most out of those hard-to-find materials or re-design their products for greater flexibility.

Operational Excellence

We support you in developing a continuous strategy for improving and optimising your business processes and systems and the executional performance of your operations. We work to increase efficiency, reduce waste and costs, improve the quality of your products and enhance customer satisfaction.

Operational goals

Operational goals focus on enhancing company productivity and improving product or service quality. Examples include stepping up safety measures and enhancing product or service flexibility. Lean, Toyota Production System, 5S and Six Sigma are all strategies that can help you achieve these goals and drive operational excellence.

People-oriented goals

People-oriented goals concentrate on workforce-related and cultural efforts that play a critical role in meeting (and exceeding) organisational operational excellence targets. Examples include growing employee engagement in operational excellence efforts, increasing skill training and maximising employee productivity.

Digitalisation

We collect data, analyse and identify insights to optimise the amounts and costs of the inventory used, reducing waste and improving the accuracy of orders – by managing the flow of materials and products within the production process.

In the dynamic landscape of digitisation and the Internet of Things (IoT), data management and monitoring are justifiably important. An IoT monitoring dashboard simplifies the visualisation of large volumes of data but also makes the process more efficient and informative.

An Internet of Things dashboard is the command centre for your connected devices, as it provides a visual representation of data and facilitates control. Such a dashboard helps manufacturers understand their operations as they happen, troubleshoot issues in real time and gain insight into areas for further improvement.

It’s important to realise that such a dashboard doesn’t work in isolation. For it to work you need to define targets, KPIs and objectives to focus the collection of data and the amount of information to be fed back.

Improved product quality: Automated processes and quality control measures powered by AI can lead to significantly improved product quality. Machines are less prone to error than human operators, and consistent performance ensures uniformity in products. Additionally, machine learning can predict and detect defects or faults before they become critical.

Increased efficiency: By leveraging automation, machine learning and artificial intelligence, smart factories can optimise production lines. They can reduce downtime, minimise waste and enhance operational efficiency. Real-time data analysis helps identify bottlenecks or inefficiencies that can be addressed quickly.

Sustainability: Smart factories can also contribute to sustainability goals. Automation and AI optimisation can lead to more efficient use of energy and resources, reducing a factory’s environmental impact. Also, predictive maintenance means machinery can be kept at peak efficiency, further saving energy.

Predictive maintenance uses data analysis tools and techniques to predict possible defects in equipment and processes so that you can fix them before they result in failure.

Predictive maintenance can result in a 40% reduction in maintenance costs, a 70% decrease in downtime, and a 25-30% increase in overall equipment effectiveness (OEE).

Digital twin manufacturing is a concept that uses a digital replica or “twin” of a physical manufacturing process or system. This digital model mimics the behaviour and performance of its physical counterpart in real time, providing valuable insights and enabling better decisionmaking.

Success stories

Our practice can assist you in driving excellence from the shop floor to operations leadership. We can help you optimise your manufacturing operations, providing the domain expertise, tools, diagnostics, benchmarks, lessons learned and best practices you need to build layers of value as you construct your long-term vision. Our practical experience includes supporting clients as part of projects such as the following:

Client challenge: mining industry

.A client in the mining industry was looking to reduce operating costs throughout its operations but was unsure what to focus on. In effect, it was on a fact-finding mission, but also wanted to address the issues once identified. With only a limited view of the reasons behind repeated stock-outs and missed forecasts, we sought to understand the client’s current processes and inefficiencies, as well as its application landscape, to gauge the digital maturity of its operations.

PwC’s approach and solution

To build an accurate picture of the current situation, we guided the client through a detailed digital operations maturity assessment that provided a granular understanding of its capabilities, interfaces and opportunities. We then looked to build a high-level process map for each production-linked function.

The approach was divided into three steps, starting with an assessment of digital maturity and other relevant operations use cases. Once the current state of operations was identified, we agreed on the strategic direction with the client and addressed concrete bottlenecks by identifying high-value use cases, designed with a focus on the needs of the workforce, and building on a scalable and secure solution architecture. The key measures to achieve the client’s ambition increasing information availability, achieving a digitally skilled workforce, automating information flows across departments and improving production planning and automation.

From that point, we defined and prioritised the implementation roadmap as well as calculating and validating the benefit case.



Operational excellence

Digitalisation

Client challenge: medical equipment industry  

Our client was looking to acquire a medical equipment company, which was to be merged and integrated with its own operational capabilities. The target company had been operating with a global manufacturing and supply chain network spanning customers and patients around the world. The overlapping capabilities with some of the buyer’s footprint, the resulting manufacturing network would have vast opportunities for streamlining. Our job was to assess installed production capacity and evaluate potential requirements with respect to the near- and medium-term targets.

PwC’s approach and solution

In the course of our operations due diligence, we collected detailed information on fully- or partly-conveying manufacturing sites. The subsequent analysis focused on the partly conveying sites. We then built multiple scenarios and business cases to compare to short- and medium-term production plans for the combined entities. As part of these scenarios, we considered transferring these production lines or specific assets to the current installed base.

To consolidate operations we ended up transferring multiple assets from partly-conveying sites to both currently owned and fully-conveying sites. However, some assets were deemed to be surplus to requirements and were earmarked for resale.  

Manufacturing strategy

Manufacturing footprint

Contact us

https://pages.pwc.ch/core-contact-page?form_id=7014L000000IHvFQAW&lang=en&embed=true

Our experts

Wolfram Koester

Partner, Supply Chain & Operations, PwC Switzerland

+41 58 792 10 72

Email

Christoph Wellinger

Senior Executive Advisor, Supply Chain & Operations, PwC Switzerland

+41 58 792 12 99

Email