Management Consultancy: Review of Goldrock's Dilema

Hungary Project Must be Reduced to conserve cost

Lean Training Project Gantt Chart

1. Case Overview:
1. Silverstone Pharmaceuticals is:
1. fast-growing
1. grown through consolidating national producers
2. adopting lean manufacturing approach
2. flexible management style
1. region specific
1. culture
2. regulation
3. generic pharmaceuticals producer
4. multi-national business
1. 11 countries
2. No corporate presence in France
1. headquarters moved from Paris to London ending 35 year history 
5. Regional Ops director doubts Goldrock can succeed at Lean training
1. doesn't want to be reliant on Goldrock as sole provider
6. Some Managers view Goldrock negatively and are aware of consulting problems
7. * below indicates manufacturing occurs in this country
8. US* (#1 Largest Manufacturing operations by employee #)
   
1. 6 locations including 1 regional HQ with admin only
2. 5 plant directors
3. 55 senior managers
4. 90 managers
1. 1 HR Manager in charge of procuring training
5. 200 distribution staff
6. 800 manufacturing staff
7. 39 IT operations staff
8. 72 sales and marketing staff
9. 38 admin/support staff 
9. India* (#2 manufacturing location)
1. 5 locations
2. 5 plant directors
3. 18 senior managers
4. 36 managers
1. 1 HR Manager in charge of procuring training
5. 400 distribution staff
6. 600 manufacturing staff
7. 45 IT operations staff
8. 63 Sales and Marketing staff
9. 45 support/admin staff
10. UK*(tied with Poland for #3 manufacturing location)
1. 3 locations, London, Edinburgh, Manchester (assume)
2. 2 plant directors
3. 12 senior managers
1. concerned about rumours of jobs moving to E. Europe
4. 30 managers
1. 1 HR Manager in charge of procuring training 
2. Belief that SAP implementation will mean lost jobs  
5. 2 distribution staff (contracted)
6. 300 manufacturing staff
1. Belief that SAP implementation will mean transfer of production to E. Europe
7. 49 operations staff
8. 32 sales and marketing staff
9. 4 support staff (contracted)
11. Poland* (tied for #3 manufacturing location)
1. 4 locations, 458 employees
2. 4 plant directors
3. 12 senior managers
4. 20 managers
1. 1 HR Manager in charge of procuring training 
1. March 22nd: Lean training begins
5. 50 distribution staff
6. 300 manufacturing staff
7. 26 operations staff (contracted)
8. 16 sales and marketing staff
9. 30 support staff
12. Thailand* (#4 manufacturing)
1. 2 locations
2. 2 plant directors
3. 4 senior managers
4. 8 managers
1. 1 HR Manager in charge of procuring training 
5. 30 distribution staff
6. 220 manufacturing staff
7. 24 IT operations staff
8. 4 sales and marketing staff
9. 13 support staff
13. Bulgaria*(tied for #5 with Mexico manufacturing quality problems)
1. 1 location
2. 1 plant director
3. 6 senior mangers
4. 6 managers
1. 1 HR Manager in charge of procuring training 
1. 2 weeks behind training schedule
5. 50 distribution staff
6. 200 manufacturing staff
7. 13 IT operations staff
8. 7 sales and marketing staff
9. 34 admin/support staff
14. Mexico* (tied for #5)
1. 3 locations
2. 3 plant directors
3. 10 senior managers
4. 12 managers
1. 1 HR Manager in charge of procuring training 
5. 2 distribution staff (contracted)
6. 200 manufacturing staff
7. 32 IT operations staff
8. 26 sales and marketing staff
9. 3 support/admin (contracted)
15. China (#6)
1. 2 locations (1 is regional HQ)
2. 1 plant director
3. 4 senior managers
4. 8 managers
1. 1 HR Manager in charge of procuring training 
5. 40 distribution staff
6. 140 manufacturing staff
7. 58 IT ops
8. 7 sales and marketing
9. 12 admin/support
16. Austria* (#7)
1. 2 plant directors, 229 employees
2. 6 senior managers
3. 12 managers
1. 1 HR Manager in charge of procuring training
1. 2 weeks behind training schedule 
4. 60 distribution staff
5. 100 manufacturing staff
6. 6 it operations staff
7. 18 sales and marketing staff
8. 25 support staff 
17. Greece: (Large Distribution only)
1. 1 location
2. 1 plant director
3. 10 senior managers
4. 22 managers
1. 1 HR Manager in charge of procuring training 
5. 120 distribution staff
6. 0 manufacturing staff
7. 32 IT operations staff
8. 29 sales and marketing staff
9. 2 support (contracted)
18. Hungary (Distribution only)
    
1. 1 location
2. 1 plant director
3. 7 senior manager
4. 5 managers
1. 1 HR Manager in charge of procuring training 
5. 10 distribution staff
6. 0 Manufacturing staff
7. 1 IT operations staff
8. 8 sales and marketing staff
9. 14 support staff
2. Silverstone's Critical Success Factors
1. Production
1. Quality worst in Eastern Europe 
2. above average Growth in Eastern Europe (due to low cost base)
3. 2006: French Production moved to Bulgaria
1. due to cost cutting
2. proximity to growing Eastern European Market
3. change caused bad image in France
4. 2007: European HQ moved from Paris to London
1. same location as Global HQ
5. August 2010 Bulgarian contamination incident
1. 1.5M Euro of product recalled, scrapped
2. negative publicity
3. regulatory enquiry
2. Cost Control
1. support functions outsourced to reduce cost
2. continuous production, safety concerns (implied)
3. need to integrate variety of systems and processes
3. Goldrock is:
1. Consultancy with separate businesses for
1. IT systems development*
1. assigned SAP implementation project (see below)
2. assigned confidential feasibility study: move UK data centre to Poland
3. Mar 2nd 2012: feasibility study due
2. outsourcing
1. assigned Lean training task from Goldrock management consultancy (see below)
2. Lean training dates fixed due to fiscal calendar
3. Lean training taught by external provider and local Silverstone staff
3. management consultancy
1. conducted strategic review of Silverstone's operations
1. SAP implementation -> Assigned to UK IT systems dev.
2. supply chain changes
3. lean manufacturing training-> Assigned to UK Outsourcing Practice
4. Move UK data center to Poland-> Assigned to IT systems dev Practice
1. Confidential feasibility study
4. businesses are encouraged to collaborate
2. Headquarters are in France, operates in 30 countries
3. 10 year relationship with Silverstone
4. Providing all IT operations for Silverstone
5. short on employees
6. Doesn't have Polish Speaking consultants who can conduct LEAN training
7. Doesn't have complex lean project implementation experience
4.  Goldrock's Critical Success Factors:
1. Projects on time and under budget
1. delay Poland data centre project 
1. determine penalty
2. resource smooth Lean training, especially in Hungary
2. Rebuild strained relationship with client
5. UEBS:
1. has 5 year internship relationship with Goldrock (assumed)
2. providing assistance to Goldrock on how to:
1. reduce short term risk of Silverstone projects' failure
2. reduce medium term risk of Silverstone projects' failure
3. reduce long term risk of Silverstone projects' failure
3. provides a team of 5 MBA students in an advisory role
4. UEBS team tasked with
1. Evaluate Goldrock's current situation
2. Research best practices at similar organizations
3. Make a presentation to Goldrock's managing partner on February 18th, 2012