Optimizing production in China and India
Numerous companies that have outsourced production volumes to China or India or set up new production plants there are increasingly coming to realize that the originally calculated savings effects have often failed to materialize. In addition to expenditures for the supply chain to or from Asia, which in some cases are extremely high, the essential cost drivers are, in particular, quality problems and inadequate plant productivity. There are a variety of reasons for this:
- Inadequate (professional) planning of production structures at the local level in the face of often rapid growth
- Rapid, often uncoordinated outsourcing initiatives
- Divergent understanding of standards, e.g. with respect to quality requirements
- Problematic collaboration between foreign workers and German management staff
- Inadequate training of workers
- Lack of productivity and cost awareness through “low-cost country environment”
- Rising wage costs and high fluctuation
In order to counteract these trends, it is often necessary to undertake a fundamental reorganization and realignment of production processes and management structures. In addition to implementing the principles of lean production tailored to the respective location, it is crucially important to have professionally organized personnel management and targets-based personnel development.
You can find an overview of our entire spectrum of services in this area under Lean Production.
