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Tata Strategic used four broad levers to meet the client’s objectives. Capability up-gradation was used to build expertise in critical areas by adding qualified manpower; Accountability for quality by elimination of most of the inspection activity by assigning accountability for the quality of machining, assembly and manufacturing processes to the manufacturing function; new role definition for QA by redefining roles and responsibilities of the quality assurance function so that its focus is on long-term product and process improvement; manpower rationalization by reducing manpower through technology up-gradation, zero basing, supplier quality improvement and outsourcing.

It was assessed that the client could achieve a 28 per cent manpower reduction over two years if the recommendations were implemented. The client has restructured the quality assurance function in line with the recommendations and also implemented an 8 per cent manpower reduction in the first year itself.

Tata Strategic conducted a diagnostic exercise which identified key productivity impediments. Tata Strategic used tools such as zero basing, outsourcing, process mapping and benchmarking to overcome these impediments and improve productivity. Tata Strategic identified a potential for manpower reduction of over 40 per cent.

The client is in the process of implementing the recommendations.

Tata Strategic focused on manpower cost since it was the key component of overall operating costs, and mapped the labour requirement for each of the business processes. Improvements were based on benchmarking, outsourcing and zero-basing. In the former, units across various locations within the same organization were studied to identify the manning patterns and internal benchmarks for each process. Benchmarks were identified in areas such as processing, maintenance and indirect manpower. Further, outsourcing opportunities were identified for non-core processes such as transportation and housekeeping. Redesigning existing processes and eliminating redundant activities in payroll processing, billing, stocking, etc, were studied through zero-basing. Enablers such as IT systems and mechanization were identified. Manufacturing optimization was also suggested to minimize the total cost of production.

Tata Strategic identified a mammoth 46 per cent of existing manpower as surplus. Currently, the client is implementing the recommended changes.

Tata Strategic conducted a preliminary diagnostic workshop with the senior management of the manufacturing function to identify key factors contributing to process inefficiencies. Interviews with critical stakeholders were held to identify current role descriptions and performance evaluation methods. A broad-based complexity mapping framework was developed to outline differing levels of manufacturing complexity, and optimal staffing levels were determined using zero basing and internal benchmarking. Based on this, Tata Strategic developed a new manufacturing organisation structure along with detailed individual role descriptions in line with the top management’s strategic objectives. Existing capability gaps especially in support functions like machine maintenance, and process capability were identified and suitable roles were created to address the issue. Redundant activities were identified and the relevant roles eliminated or outsourced. Changes in degree of empowerment, decision making and approval processes enabled further elimination of intermediary roles, resulting in de-layering at the operating level.

A 20 per cent reduction in indirect manpower has been achieved on top of a 40 per cent increase in production volumes. The client is currently implementing the changes in its organisational structure and the critical processes in manufacturing and quality control.