A Raise in Effectiveness of the Mechanical Repair Shop

The goal of this job was to analyze the activity of this corporate department and to develop methods to raise the effectiveness of the mechanical repair shop.

During the first stage, integrated diagnostics of the mechanical repair shop was performed. Within the framework of the audit, work was done on analyzing the finished goods, expenditures, use of the main funds and working resources. Tight spots were indicated and an economic effect was calculated if these spots were eliminated. A situational and a SWOT analyses were performed.

During the second stage, ARCO specialists started to implement measures to increase the effectiveness of the mechanical repair shop in the area of the necessary organizational changes through reengineering of business processes.

The following work was completed within the framework of the second stage:

1. The structure of the relationship between the shop and other factory services was analyzed “as is”.
2. Business processes were analyzed “as is”.
3. The schematics of restructuring the shop were created.
4. The system for motivating the shop’s personnel was developed.
5. The system of accounting for equipment work time was developed.
6. The reporting system was developed.
7. The business processes “how it must be” were developed and implemented.
8. Local normative acts were developed (provisions, regulations, job instructions, orders).
9. A strategic partner was found.

The new strategic partner allowed the factory to enter and gain a solid foothold in external markets and to raise the effectiveness of the services performed.

Today, the mechanical repair shop is segregated into a separate enterprise that successfully functions on the market.