Essay on Deloitte Case Study

3283 Words Apr 16th, 2016 14 Pages
• In this case Deloitte & Touche Consulting Group was tasked to come in and consult with SKS Manufacturing, an auto supplier, in order to fix their inventory problems along with other issues the company was facing. Maria Chen would lead part of the team for her first time on this 12-week engagement, but would in occur some difficulties throughout the first 6 weeks of the project. The Deloitte team has a lot of work to do before the end of the engagement in order stabilize the company and prepare them for a more radical long term project that plans to “reengineer” their business process. Most of the responsibility for the slow start on the project is resting on Chen’s shoulders due to the choices she has made during the first half …show more content…
While we would have approached the improvement problem in a similar way to Deloitte, there are some disadvantages to their initial approach we would have tried to mitigate. Deloitte’s initial approach was to reduce cash investment in raw materials as well as synchronize production and procurement. This approach has a number of advantages that lead us to agree with these two avenues. First of all, their inventory has been increasing in recent year, which generally reduces their cash on hand and represents greater disjoint between the production and procurement of materials. Thus, Deloitte’s focus on inventory management directly addresses an issue that should help ameliorate the problem. The rise in inventory, may also correlate to increased cluttering of the production shop, which would likely decrease productivity and make it harder to ship customer orders in time for required delivery dates. Additionally, both of these approaches are related, so having the team work on both may allow for synergetic effects that would enhance the overall effect of the project. Finally, successful completion of these two efforts would likely quickly address the apparent cash flow problem, while positioning Deloitte for moving into a much bigger contract of full reengineering.
There are also a few limitations to this approach that we would address for our approach. First of all, the two-pronged effort is based upon the assumption that reducing inventory is

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