Case Study
Global Multi-Billion-Dollar OEM Electronic Components Manufacturer Implements New Operating Model, Reducing COGS 27% and Delivering 4:1 ROI
27%
Cost of Goods Sold Reduction
Strategic Imperative
To improve operational efficiency and productivity across key manufacturing units while addressing IT system challenges to deliver a cost-of-goods-sold reduction exceeding 25%
Client Background
- Renowned global OEM electronic components manufacturer producing custom and standard transformers, inductors, and chokes for industrial markets
- Engagement centered on the New York facility’s custom-product engineering, manufacturing, and distribution operations
- Operating performance depended on coordinated quotation, engineering, production scheduling, distribution, and cross-functional information flows
- Rapid growth was expected, but organizational processes, systems, and capabilities were not prepared to scale
- Leadership needed stronger operating discipline to improve productivity, reduce cost of goods sold, and support growth
- Lead times, productivity, and engineering/quotation performance remained below requirements as growth expectations accelerated
Key Issues & Barriers
- Loosely defined, conflicting goals and cultural resistance weakened alignment across manufacturing, engineering, and support functions
- Cumbersome manual quotation processes, ineffective follow-up, and underutilized technology delayed response and increased administrative effort
- Engineering lacked readiness for automation and increasing demand, limiting the organization’s ability to support rapid growth
- Manufacturing data was inaccurate or nonexistent, weakening scheduling, performance measurement, and operating decision-making
- Supervisors lacked management skills and awareness of performance-management accountabilities, limiting proactive control and coaching
- Scheduling could not shift labor resources to bottlenecks, constraining throughput and responsiveness across key manufacturing units
Key Implementation Components
- Reengineered and implemented quotation, engineering, and manufacturing workflows to improve productivity and streamline execution
- Coordinated redesigned processes with the new SIOP process and MRP II system implementation to strengthen integrated planning
- Conducted team-building sessions for leadership and senior management to strengthen cohesion, focus, and cultural alignment
- Aligned management performance objectives and translated SMART goals throughout the organization to clarify priorities and accountability
- Developed accurate manufacturing data to improve scheduling, bottleneck management, and operating decision-making
- Implemented key performance measures and timely results reporting to improve visibility, control, and corrective action
Benefits & Results
27%
Cost of Goods Sold Reduction
25%
Productivity Improvement
12%
Lead-Time Reduction
4:1
Return on Investment