Lean and Manufacturing Challenge

Manufacturing

It hasn’t gotten easier for companies to answer the essential questions: What shall we make (or buy)? Where shall we make it—and how? But economic uncertainty, trade volatility, and emerging technologies have made it critical for companies to find the right answers.


The Factory of the Future

New technologies have upended industrial production. As a result, smart manufacturers are turning toward factories of the future. But they must address critical challenges about just which manufacturing technologies, structures, and processes to embrace.

BCG helps our clients make the decisions that shape countless conditions: your environmental footprint and sustainability, your cost profile, your exposure to risks, your workforce requirements, your customer targeting, and your ultimate profitability.


Our Perspective on Manufacturing

BCG’s manufacturing consulting focuses our clients on three essential and guiding questions.

What Will You Manufacture?

Your product, product lines, and underlying components establish your strategic direction. What will you make in-house and what will you buy from a supplier? What will your supply chain look like, and how will you optimize it along with your manufacturing operations? BCG brings expertise in:

  • Manufacturing strategy and organization
  • Make-or-buy decisions
  • Risk management and sustainability

Where Will You Manufacture?

You must decide not only in which locations your plants and distribution centers sit but also how they’re optimized for such particulars as regulations, logistics, taxes, and duties. BCG helps clients make the best decisions by analyzing future demand models, cost drivers in shipping and logistic costs, and manufacturing and supply requirements. We assist through our:

  • Advanced production network optimization tools
  • Global Manufacturing Cost-Competitiveness Index

How Will You Manufacture?

BCG helps evaluate your supply chain. We view your global manufacturing operations through an integrated lens, and this comprehensive and holistic perspective ensures that everything from your lean manufacturing practices to your use of advanced robotics performs at a world-class level, from end to end. We help you envision and build:

  • Factories of the future that incorporate Industry 4.0 technologies
  • Maintenance and production engineering strategies
  • Logistics capabilities
  • Lean production systems
  • Quality processes

Our Manufacturing Consultants


What BCG Delivers in Manufacturing

BCG’s manufacturing consulting clients enjoy access to a broad range of resources, including our Innovation Center for Operations and Global Operations Centers. The following are among the tools and offerings we deliver.

Diagnostics: Performance Benchmarking and Health Check

diagnostics: Rapid Plant Optimization

Diagnostics: Global Manufacturing Cost-Competitiveness Index

Design: Model Factories and Mobile Labs

Design: Technology Demonstrators

Design: A Partnership Ecosystem

Enablement: Manufacturing and Supply Chain Academy


Examples of Our Client Work in Manufacturing

WHAT: Cost Modeling Manufacturing

WHAT: Cost Modeling

For a car company, BCG focused on the what question: Should the company make or buy certain products? To arrive at a comprehensive answer, we evaluated relative costs and the strategic importance of parts and processes; modeled external prices; and then compared those projections with in-house prices. As a result, our client slashed expenses within its production network by $120 million per year.



WHERE: Network Optimization

A pharmaceutical company asked BCG to optimize its production network. When we identified the best locations for offshore outsourcing, the company was able to recapture up to 55% of the cost of goods sold.

WHERE: Network Optimization - Manufacturing


HOW: Performance Management - Manufacturing

HOW: Performance Management

An industrial goods company was experiencing an unwanted byproduct of its success: an unwieldy production system and, by extension, unclear KPIs. BCG designed and then implemented a system to apply standardized metrics across plants, thus paving the way for $30 million in savings.

Our Latest Insights in Manufacturing

Shifting Gears in Auto Manufacturing - Rectangle

Shifting Gears in Auto Manufacturing

To succeed in a future of electric vehicles, manufacturers must understand and prepare for the profound effects of this transformation on operations and labor requirements.


Related Capabilities

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