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Deloitte Case Study

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• 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 of this engagement.

Why does SKS need Deloitte’s services? Would you have approached the improvement problem in the same way as Deloitte in terms of defining the problem and work planning?

SKS needs Deloitte’s services for a number of reasons with the main influence being that they were having a cash flow problem, and they didn’t have the experience or manpower to address this problem themselves. As there were a number of unfinished components sitting between presses and “‘split-batches’” making the production shop “a little chaotic”, their whole process scheduling likely had issues. Additionally, they were having difficulty maintaining acceptable levels of customer service by being late to ship a significant proportion of the orders.
Deloitte focuses on four improvements in four main areas: operations, information technology, financial management, and strategy development. These areas are very pertinent to solving the cash flow issues in the production company where their “basically useless” computerized system for managing operations was negatively affecting their financial management. Thus Deloitte, which has employees

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