Frequently Asked Questions

Start by measuring your Overall Equipment Effectiveness (OEE). Identify the biggest source of loss — availability, performance, or quality — and tackle that first. Common quick wins include reducing changeover times, improving preventive maintenance schedules, and training operators on first-pass quality checks. For structured support, our Business Transformation engagements focus on improving OEE and plant productivity.

1. Measure OEE at each workstation. 2. Eliminate the top 3 causes of unplanned downtime. 3. Use visual management boards for real-time status. 4. Run short daily standup meetings with the production team. 5. Cross-train operators so absenteeism does not stop the line.

OEE improves when you systematically reduce the Six Big Losses: equipment failures, setup and adjustment time, small stops, reduced speed, production rejects, and startup rejects. Track each loss daily, prioritise the biggest one, and implement a focused improvement (kaizen) project around it. Our Business Transformation team runs these improvement programmes with manufacturing plants.

An OEE of 85% is considered World Class for discrete manufacturing. It means 85% of your planned production time is truly productive. Most plants run between 60-75% OEE, so 85% is an ambitious but achievable target with structured improvement work.

80% OEE is above average and a strong result for most Indian manufacturers. It signals that your equipment is well-maintained, your processes are reasonably stable, and quality losses are under control. The next step is to close the gap to 85%+ through focused kaizen projects.

90% OEE is exceptional and rare. It is achievable mainly in highly automated, high-volume processes with mature TPM programs. For most manufacturers, chasing 90% without the right infrastructure can create measurement inflation — ensure your OEE data is honest before setting that target.

The Six Big Losses are: (1) Equipment Failure / Breakdowns, (2) Setup and Adjustment, (3) Idling and Minor Stoppages, (4) Reduced Speed, (5) Process Defects and Rework, and (6) Reduced Yield at Startup. They are grouped into Availability, Performance, and Quality — the three components of OEE.

Yes. OEE is one of the most important manufacturing KPIs because it combines three dimensions — machine availability, running speed, and product quality — into a single percentage. It gives plant managers a quick, honest picture of how effectively their equipment is being used.

100% OEE means you are manufacturing only good parts, as fast as possible, with no downtime. It is a theoretical benchmark, not a realistic daily target. In practice, even world-class plants target 85%. A score above 95% often indicates data is not being captured accurately.

The most effective approach is to reduce waste first — not cut headcount. Map your value stream to find the biggest sources of waste (overproduction, waiting, rework, excess inventory). Then target those systematically. Labour cost reductions that follow process improvements are sustainable; cuts made without process work tend to backfire. Our Business Transformation work starts with exactly this kind of waste and value-stream analysis.

Key levers include: improving machine OEE to get more output from existing assets, reducing scrap and rework through better process control, renegotiating raw material contracts with consolidated purchasing, reducing energy consumption through shift scheduling, and cross-training workers to eliminate bottlenecks.

Proven techniques include Standard Costing with variance analysis, Activity-Based Costing (ABC) to identify true cost drivers, Value Engineering to eliminate cost without reducing function, Kaizen costing for continuous small reductions, and supplier development programs to reduce inbound material cost. If you want an outside view on where to begin, our Management Consulting team can help.

Cost reduction differs from cost control — it permanently lowers the cost baseline. Techniques include process redesign, automation of repetitive tasks, product simplification (reducing components), make-vs-buy analysis, and energy audits. Sustainable cost reduction always starts with a root-cause analysis, not across-the-board cuts.

Common causes include rising raw material prices, unplanned equipment downtime, high scrap or rework rates, labour absenteeism, inefficient process layouts, energy price increases, and poor demand forecasting leading to emergency procurement. In India, logistics and supplier lead-time variability also add significant hidden cost.

When production costs rise, manufacturers typically reduce output, increase prices, or both. If costs rise faster than price adjustments are possible — especially in competitive markets — margins compress and investment in capacity slows. Managing cost actively, not reactively, is what separates profitable manufacturers from those constantly firefighting.

The most common reasons are lack of autonomy in decision-making, poor alignment between ownership and professional management, unclear growth paths, and feeling undervalued relative to market. In family-run manufacturing businesses, senior managers often leave when they are given responsibility without authority — held accountable for results but unable to make the calls needed to deliver them. If this is happening in your business, our Executive Search practice helps you build a leadership bench that fits.

Retention at the senior level is about clarity and trust more than compensation. Define the role and its decision-making boundaries clearly. Give them visibility into business strategy. Create performance-linked incentives tied to outcomes they can actually influence. And address the cultural gap between ownership and professional management — this is the most common but least discussed reason senior managers quit. Our Management Consulting team helps owners and professional managers close that gap.

Consider hiring a management consultant when you are scaling and processes are breaking down, when you need to professionalise from a founder-led to a management-led structure, when productivity or quality has stagnated despite internal efforts, or when you need to search for senior leadership objectively. The right time is before the crisis, not during it. Learn more about our Management Consulting and Executive Search services.