Skip to content
THE LEDGER
MKM-R-2026-014New edition: The State of Mid-Market Transformation 2026
01 / 04
MARKHAMLet’s talk
← EngagementsCase file — Manufacturing · 2025MKM-E-2025-124 · Client-approved · Anonymised

Throughput recovery in a two-plant industrial group

ClientTwo-plant industrial group
SectorManufacturing
Business areaOperational excellence
Period2025
+19%Throughput against the month-0 baseline, both plants
$0Capital expenditure required to deliver it
−38%Rework hours at the bottleneck work centres
+3.1ptGross margin at month 9

Audited under the Markham Verification Standard at month 9; run-rate re-tested at month 12. Full audit trail available under NDA.

01

The situation

A two-plant industrial group had order books it could not ship. Lead times had stretched from three weeks to seven, overtime had become structural rather than occasional, and the board was reviewing a $14M capacity expansion as the obvious answer to all of it. The capex case was internally persuasive and externally unexamined.

The group asked for a second opinion on the expansion. We thought the more useful question was where the existing capacity was already going, because at nameplate the two plants between them held 26% more capacity than the order book required.

04

Impact in detail

MeasureMonth 0Month 9Change
Throughput, both plants100 (index)119+19%
Order lead time, median7.2 wks3.9 wks−46%
Rework at bottleneck centres19% of hrs11.8% of hrs−38%
Schedule resets per week61−83%

Baselines frozen and audited before phase one; month-9 readings verified under MKM-F-003 and re-tested at month 12.