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Improvement of gross profit through manufacturing plan optimization.

Improvement of gross profit through manufacturing plan optimization

This document summarizes a case where Accenture achieved gross profit improvement for a major manufacturing client through the optimization of manufacturing planning. While it was recognized on the ground that "production capacity is 100% utilized," a detailed analysis of manufacturing plans and actual performance revealed that significant waiting times occurred to avoid process conflicts, resulting in one lot being carried over to the following month. Therefore, a feasible manufacturing plan was optimally devised, taking various constraints into account, and applied in a supportive and practical manner. Compared to peak production last year, the operating rates of key equipment improved from 88% to 99%, 81% to 98%, and 80% to 93%. The created production capacity has led to the additional production and expansion of high-margin products, achieving gross profit improvement.