A Decade of Data-Driven Decision Making and Business Partnering for a Manufacturing Company

Background

India’s leading vertically-integrated provider of plastic packaging materials had a variety of products and manufacturing processes and was keen to analyze reasons of lower profitability and margins. The complexity of the processes made it challenging to exactly identify inefficiencies and wastages and consequently course correct. 

Observations and Approach

CFOB’s CFO Partner worked on various initiatives to address profitability concerns 

Tracking utilization at a plant and machine level to identify bottlenecks. This resulted in significant revelations and helped augmenting capacities.

Started analyzing and costs and productivity at a machine level – this helped to detect inventory accumulation and wastages at a machine level.

Viability studies were introduced for taking up any new capital expenditure.

Detailed Product level costing framework implemented with unit economics – resulting in deeper understanding of margins across products/grades/customers/geographies.

Rolled-out division-wise profitability targets and MIS thereby driving efficiencies and fixing responsibility.

While data availability was a challenge in the initial period, the CFO Partner helped the team with templates and tools to capture and process a lot of information that was required for the analysis.