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.
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basic information
Detailed analysis of manufacturing plans and production performance Detection of hidden waiting times (production capacity) Optimal planning of manufacturing schedules to avoid process conflicts Development of feasible manufacturing plans considering various constraints Support for planning in a collaborative and practical manner Assistance in expanding the created production capacity
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Applications/Examples of results
【Purpose】 Maximizing production capacity without relying on large-scale equipment investment Improving equipment utilization rates Enhancing the accuracy of manufacturing plans Improving sales and gross profit 【Examples of Achievements】 In a major manufacturing company, increased the utilization rate of key equipment to a maximum of 99% Compared to peak production last year, confirmed a significant improvement in the utilization rate of key equipment Utilized the created production capacity for additional production and expansion of high-margin products, improving gross profit
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Accenture transforms change into power, providing 360-degree value to customers, employees, shareholders, partner companies, and society. We support Bristol Myers Squibb by leveraging generative AI and automation to accelerate clinical trials and streamline drug development. We consolidate our full capabilities as a reinvention service to solve the most challenging problems. We guide enterprise transformation to be executed on a larger scale and with greater impact.
