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Increasing Firm Productivity through Management Consulting Services in India

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Increasing Firm Productivity through Management Consulting Services in India

secondary evaluation summary · J-PAL

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Formalized Inventory Storage and Control Norms

"The factory floors were often dirty and disorganized, and their yarn and spare parts inventory stores frequently lacked any formalized storage systems."

Management-Driven Firm Expansion

"Better management also allowed treatment firms to open more production plants in the three years following the start of the experiment than comparison firms."

Performance-Based Incentive Systems

Preventative Routine Machine Maintenance

"There was a roughly 50 percent reduction in quality defects, a reduction in machine downtime due to more routine maintenance, and greater worker efficiency and attendance due to the introduction of incentive schemes."

Standardized Quality Defect Recording and Remediation

"Over the course of four months, the consultants worked with each plant to help introduce key management practices, such as keeping the factory floor tidy to reduce accidents and facilitate movement of material, recording quality problems by type and analyzing the records daily to address the defects..."

Structured Operational Diagnostics

"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."