Structured Operational Diagnostics
RCTReview
Firm owners frequently lack objective visibility into factory-level operational defects and inefficiency root causes across complex multi-building production sites.
Picture this
Think of taking a car to a master mechanic for a full 100-point inspection before starting a long cross-country trip. Instead of guessing why the engine sputters, the mechanic hooks up diagnostic tools, tests every part, and gives the driver a prioritized list of exact repairs needed to prevent a highway breakdown.
What the evidence says
Providing a 15-day structured diagnostic analysis and tailored recommendations established the baseline performance database required to drive a subsequent 16.6% total factor productivity increase.
- Who was studied
- N = 17 large manufacturing textile firms (28 plants total) in Mumbai, India, with average sales of US$7.5 million and assets of US$13 million.
- How
- Randomized Controlled Trial (RCT) involving an initial 15-day diagnostic evaluation phase per plant over one month to analyze management practices and assemble a plant-level metrics database.
What to do
Conduct an intensive 15-day operational diagnostic across production facilities to evaluate current practices against international benchmarks and build a centralized baseline metrics database.
From the source
"At the end of the diagnostic phase, the consulting firm provided each plant with a detailed analysis of its current management practices and performance, and recommendations for change."
Increasing_Firm_Productivity_through_Management_Consulting_Services.pdf