 The task was to reduce inventory, instead, WIP

increased by 13%
 The inventory as a fraction of sales is 22.22% in
1995 while it was 21.8% in 1994, 17.01% in 1993,
14.43% in 1992 and 19.64% in 1991.
 SKS was experiencing critical cash flow. The
receivables figure in 1995 went up by 41.77%.
 Thus, it delayed its payment to several suppliers.
 Customer service levels were poor.
 Only 77% customer orders were delivered on time
 In 1995, Deloitte & Touche Consulting Group was
a wholly owned subsidiary of Deloitte and Touche
LLP
 Deloitte and Touche LLP was one of the “Big Six”
accounting firms
 It was a merger between Deloitte, Haskins & Sells
and Touche Ross.
 In 1993, the Consulting group comprised of 28% of
the total revenue
 In US, Consulting group comprised of 2700
professionals out of which 250 are partners
 5600 consulting professionals worldwide
 The Consulting group focused on : Operations,
IT, Financial management and Strategy
development
 Its wholly owned subsidiaries are Braxton
Associations, DRT International and CMD
Systems. It also merged with ICS for SAP, an
ERP software, for large scale project
implementations
 Its major competitors are Anderson Consulting,
Price Waterhouse, E&Y, McKinsey, BCG, Booz
Allen and CSC Index
 Integrated Teams
 Knowledge Transfer
 Third Party Ratings
 Integration of Approaches
 Consultant/Analyst
 Senior Consultant
 Senior Manager/Manager
 Partner
 Lack of support from the top two senior
executives
 No collaboration between Chen and Rohan
 No collaboration between the firms
 Communication gap within the departments of
SKS
 The consulting group considered a long term
“re-engineering” to redesign cross-functional
teams
 A short term-12week engagement approach
was introduced to stabilize the current cash
positions
 The short term plan was necessary for the long
term plan to be implemented
 Foremost attention to cash investment in raw
materials and synchronising production with
procurement to reduce inventory levels
 The former part was under Ben Rohan while
the later was led by Maria Chen
 They were expected to work together
 This was to facilitate smooth execution of the
short term approach
 To develop production scheduling rules
 Relieve the plant of bottlenecks
 To design and implement a pilot a pull-based
synchronous manufacturing
 To design a new factory layout and roll-out
plans
 To work with Ben Rohan to reduce overall
inventory levels by $10M
 Time Zero
 Ramp Up
 Phase Two
 “White Knuckle” Time
Thank You