References

Manufacturing G&A optimization

PROJECT OUTLINE

  • The engagement is part of the Economic Efficiency of Operating Costs program of an international car manufacturer. The study is mainly focused on the industrial perimeter.
  • The ratio of fixed costs to value is globally increasing in the group’s factories: the objective is to implement a G&A reduction plan on all production sites.

PROJECT APPROACH

  • Collection, harmonization, and analysis of management data in order to improve the economic efficiency of the operating costs of the production sites.
  • Identification of relevant cost drivers for each category.
  • Carrying out an inter-site benchmark on thirty audited plants and identifying the main sources of optimization.

RESULTS

  • €300M identified as theoretical optimization potential.
  • Implementation of a new reporting scheme for performance indicators.
  • Initialization of an action plan in each plant, with a G&A reduction target of +3% per year (commitment to 2%).

Pagamon is a strategy and transformation consulting firm founded in 2013. We support major players in the industry, services and life sciences sectors in their search for balance. Helping them structure their strategic vision, transform their operational and/or digital model, and drive change. To support profitable, sustainable and responsible growth. As a committed player, Pagamon leads the Observatory of the Balanced Organization™, articulated around a "think tank" and an annual survey. In order to provide an innovative, sometimes offbeat, perspective on the strategic and operational implementation of transformations to support the growth of companies.