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…show more content…
Lowering the inventory would likely result in decreasing the currently unacceptable levels of customer service by removing that estimation buffer. Thus, without the reengineering of the production processes, the attempts to change the inventory levels may fail.
As the approach by Deloitte intended to avoid a full reengineering initially, but provide a brief alleviation of the cash flow issues while positioning themselves for further work, we would have added a third component to the two-pronged effort. This would have reduced the risk to Deloitte if the inventory was not the key issue. We would have had a team that was focused on reducing the receivables owed to SKS, as that amount increased significantly from 1994 to 1995.

• What mistakes happen during the designing project/mobilization phases? How did these mistakes impact the first 6 weeks of the project? Why is Chen finding the situation so difficult?

There were several mistakes made by Maria Chen in the first 6 weeks of the project starting with her never starting a good relationship with the client and its workers. Instead Chen focused on her time on a complex technical analysis spreadsheet of ideas she thought she could implement, but failed due to lack of knowledge on SKS. This spreadsheet took about 3 weeks for her to complete and was ultimately useless and filled with holes thus wasting ¼ of the project
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