Manufacturing consultant

As a promoter it could be possible that the manufacturing unit you are running could have happened due to choice or chance. Assuming you are technically qualified and you had previous exposure that domain, it is possible to run the unit efficiently with year on year growth and 8 to 12% EBITDA based on the intensity of competition and product offering.

If the unit has come to you by chance and your historical aptitude is not really aligned with the domain, there is good chance that non-stop challenges keep occurring in day to day management of the unit. This could result in lower profit margins or very slow growth trajectory and ever increasing working capital.

The need to look for a manufacturing specialist is to be decided based on the problem being faced in the unit or the goal which you set as a promoter. If one can safely assume that strategic issues are well evaluated and it is concluded that manufacturing is the REAL and only bottleneck or need of the hour for what so ever rationale, then a specialist in manufacturing can help.

The role I play in such situation is that of a specialist who can look at the made to order or line based production or large scale integration ( like a bus body building or earth moving machinery assembly etc). The challenges and factors influencing outcome in all three are very different. The strong engineering expertise I bring enables me to look if the design issues are beyond doubt addressed and well documented.

If design is coherent to support the kind of manufacturing, then it is possible to look at the financial implications of all decisions to be made to make manufacturing happen smoothly. This kind of end of spectrum outlook comes from hands on CEO experience in extracting 85 to 90% of output from installed capacity.

It is also possible that while infrastructure is great and design is aligned but quality systems are completely absent that rework or rejection becomes the issue. It could also happen that sales force interfacing with customers is not effective and there is pressure to constantly change the production plan.

As a manufacturing specialist, I look at reliability of the plant through evaluation of machinery and get the base line assumption verified before attempting a targeted output, Ignoring this aspect will affect cash conversion cycle and end up in more debt and dissatisfied suppliers as payments will elude no matter how much money is being pumped in quarter after quarter.

If getting a higher return is the reason for approaching a manufacturing specialist or turnaround specialist, then it is important that such specialist understands how to connect top floor ( EBITDA/ROI/ROEC) with shop floor (Tonnage output or units despatched with relevant rejection or cost of poor quality).