The Stabilization and Restructuring Framework Act (StaRUG) requires companies to implement a crisis early warning system.
We believe that the checklists currently in circulation (strengths and weaknesses check, “early detection staircase”, “early detection of weaknesses” crisis test, SWOT analysis) are only selective and of limited suitability for enabling effective early crisis detection in the manufacturing industry.
As symptoms of a crisis can only be reflected later in the balance sheet, the analysis of balance sheet ratios is often not very suitable for providing objective indications of the need for a turnaround process.
Crises are made up of external and internal causes, which must be identified as such and their interactions determined.
In order to identify internal causes of impact in the manufacturing industry at an early stage, we believe that the focus should be on determining key business figures and optimization potential in ongoing production and logistics, i.e. leaving the “bird’s eye view”.
For example, by measuring machine running times and tracking material flows of individual raw materials and supplies, the causes of crises can be specifically identified at an early stage and – with the explicit involvement of and communication with the workforce – eliminated.
In this area, we rely on the digital tools of the turnaround and restructuring division of
These enable, among other things, the visualization of error codes of individual production steps down to individual means of production. We are convinced that this data and the turnaround processes based on it have earned the name of effective early crisis detection in the literal sense of the word.
Further information on this can be found at www.hcie-consulting.de
- Early Crisis Detection
- Use of Digital Programs to Evaluate Data
- Our Cooperation Partner