BCG Practice Case 3分析和总结必威体育精装版分析和总结.docx

Increasing Profits in Jet Fighter Manufacturing Step 1:Actively listen to the case Your client is a U.S. defense contractor that manufactures the Mohawk Light Fighter Jet for the British Royal Air Force. The company has produced the $20 million fighter jet for the past 12 years. The British government has decided to put the contract out to bid, however, and to win the program, the clients purchasing agents have estimated, the company will need to cut its costs by 5 percent. It has asked BCG to help it reduce costs. Step 2: Establish understanding of the case Let me first clarify the question. The client manufactures a $20 million jet and, because of competitive forces, has to reduce its cost by 5 percent. Is BCGs role also to verify the purchasing departments estimate? No, you can assume that the purchasing estimate is correct. BCGs role is to find the cost savings to meet that estimate. Could I take a few minutes to think about the case? Sure, please do so. Step 3: Set up the framework First, I would like to understand the cost structure of the jet to see what we should look at first. Next, I would like to look at major factors driving the costs we are targeting. Finally, I would like to explore potential ideas to reduce cost. That sounds like a very logical approach. Lets proceed. Step 4: Evaluate the case using the framework Because the time for the interview is limited, I think we should try to identify those areas most responsible for the cost of the jet. Time is limited on real projects as well, so I think that would be a good idea! You have the following cost information for the jet. How would you interpret it? The major cost driver for the jet appears to be purchased materials. Within manufacturing, direct labor is a fairly large component of cost, as are program management and corporate overhead within overhead. I think we would want to concentrate most on materials, however, since thats where most of the costs can be found. That sounds like a good place to