Members with in-depth knowledge of manufacturing moved around in all directions to implement company-wide reforms

What to challenge? Who to collaborate with?

• Leading manufacturing conglomerate
• Amid the growing trend towards more sophisticated portfolio management, the company needed to build a business management infrastructure contributing to portfolio management and restructure its low-profit businesses

Impact on the history of business and economy

• Rebuilt low-profit businesses and generated cash for investment in growth domains through structural reforms that have convinced the frontline staff
• Established a business management infrastructure as the basis for portfolio management by introducing ROIC management systems and improvement measures

IGPI’s initiatives for discontinuous change

Members with in-depth knowledge of manufacturing got involved on-site to visualize the cost of manufacturing, which had become increasingly complex and developed reform measures.

[Before IGPI’s support]

The increasing complexity of manufacturing, but cost accounting remained the same

• Unable to capture profit/loss, resulting in a large number of unprofitable products
• No confidence in costing, nor ability to change

[With IGPI]

Visualization of the actual cost of complicated manufacturing for reforms

• Revealed differences in the manufacturing process to identify non-profitable products, with a clear logic that by the on-site staff could understood
• Implemented improvement measures with a sense of conviction → Fundamental reform or withdrawal