Contract Management - Boosting Croatian Plant Productivity

Problem

An Italian company established in the manufacturing of single and three-phase alternators saw the productivity of its manufacturing plants in Croatia plummet. After an initial internal analysis, they realised that, in order to boost productivity, they needed to rethink their business and manufacturing processes and integrate new technologies. Most importantly, they needed to incorporate customised processes and procedures that would enable them to manufacture at optimal capacity. Lack of which would see them fall behind strong competitors that consistently reassess their manufacturing potential to ensure most productive performance.

Solved

After reviewing the manufacturer's requirements, Ergonos identified an independent consultant to lead the modernisation of the clients' plants in Croatia. He was to lead the re-engineering of business and manufacturing processes. The process required 18 months to assess, determine and implement the new business and manufacturing processes that best fit the clients' needs. As expected, the new procedures led to increased productivity and enhanced the company's position in the marketplace. The independent consultant periodically returns to the plants in Croatia to verify that the processes are followed and to evaluate any additional recommended modifications to process or equipment.

The Results

By outsourcing this project to an external specialist through Ergonos, the client managed to implement new business and manufacturing processes that kept the company competitive in the market. The outsourcing process allowed the company to efficiently find the help it needed to compete internationally for both the short and long term. Hiring an independent consultant for this project ensured that the client had access to the best expertise without having to hire a full time employee and incurring fixed labour and high recruitment costs.