What to challenge? Who to collaborate with?
- Leading manufacturing conglomerate
- Amid the growing trend towards more sophisticated portfolio management, the company needed to build a business management infrastructure contributing to portfolio management and restructure its low-profit businesses
Impact on the history of business and economy
- Rebuilt low-profit businesses and generated cash for investment in growth domains through structural reforms that have convinced the frontline staff
- Established a business management infrastructure as the basis for portfolio management by introducing ROIC management systems and improvement measures
IGPI’s initiatives for discontinuous change
Members with in-depth knowledge of manufacturing got involved on-site to visualize the cost of manufacturing, which had become increasingly complex and developed reform measures.
[Before IGPI’s support]
The increasing complexity of manufacturing, but cost accounting remained the same
- Unable to capture profit/loss, resulting in a large number of unprofitable products
- No confidence in costing, nor ability to change
Visualization of the actual cost of complicated manufacturing for reforms
- Revealed differences in the manufacturing process to identify non-profitable products, with a clear logic that by the on-site staff could understood
- Implemented improvement measures with a sense of conviction → Fundamental reform or withdrawal