The Indian branch of a German mechanical engineering company has developed extremely well over the last 15 years. With average growth rates of 20 to 30 percent per year, India was always “above plan” and generated cash. The owner soon invested in a new, ultra-modern production plant and continued to expand production (machine types and volumes).

Increasing demand led to falling quality and delivery bottlenecks

As growth increased, problems with process organization and order processing also increased. There were difficulties with the procurement of parts on the local market, as well as with the warehouse organization and process reliability. The complaints increased, which in turn caused unrest in business operations. In order to prevent (further) damage and analyze the status quo, the company hired Dr. Wamser + Batra GmbH.

Analysis & Diagnosis

This is how our department became WB turnaround management® commissioned to take a closer look at the local organization. In structured, but also numerous informal, discussions with the local management of the first and second management levels and external partners, we were able to get a realistic picture of the situation on site for ourselves and the owner:

The existing Indian management team, which grew with the company from the start, could no longer handle their tasks alone. Due to the rapid growth and increasing complexity, the challenges for the existing structures simply became too great.

Solution: Restructuring of the organizational structure

However, since we wanted to continue working with the existing management, the following measures were developed together with the parent company and implemented with our support:

  • The company was divided into two divisions, corresponding to the two different product groups of mechanical engineering and tools, with separate management. A qualification profile for the management level was created as a basis for decision-making.
  • By replacing some second-level managers, the problems in order processing and logistics were largely solved and efficiency increased.
  • In order to meet the requirements of the parent company, we developed concrete measures together with the customer Optimization of logistics processes

Tact and personal conversations

The German owner found himself in a not atypical dilemma. He had a loyal management team and a profitable, fast-growing subsidiary in India. Nevertheless, they faced growing problems lack of transparency faced.

The development of the Indian organization, the local processes Further Training of the people involved could not keep up with the growth. As a result, certain topics in day-to-day business fall by the wayside and bottlenecks, quality deficits and losses in efficiency gradually arise.

Through our systematic discussions with employees and suppliers, the problems in the local organizational structure were identified and adjusted - all of this with the aim of enabling further sustainable growth.