One foreign company and two Japanese companies merged to form a new hearing aid manufacturer. eSolia provided project management, IT and BPR consulting, and ongoing support services to complete the M&A-related activities — from factory consolidation and IT standardization to inventory system development and EDI connectivity.
Project Parameters
| Parameter | Value |
|---|---|
| Team | PM x 1, Consultant x 4, Developer x 1, Engineer x 2, Functional Key User x 4 |
| Users | 100 |
| Duration | 18 months |
| Effort | 36 person-months |
| Sites | Tokyo, Yokohama, Osaka, Belgium |
What Needed Solving
The M&A deadline was aggressive and required strong project leadership. HR challenges arose from merging very different corporate cultures. IT equipment was a mix of consumer-grade hardware with no standards. The factories were not using flow manufacturing — business process re-engineering was needed. The existing inventory database was unreasonably expensive to maintain for what it did.
What We Did
We re-engineered the business processes across the factories. We managed the project to consolidate factories — closing the Tokyo facility and moving operations to Yamato, Kanagawa. We assisted with HR restructuring. Standardized PCs were deployed where possible. LAN and WAN were linked up with IP address changes across locations. After go-live, we developed a more flexible inventory database that was far less expensive to maintain, set up EDI connectivity, and advised on IT strategy, global IT policy localization, and helpdesk structure.
What the Client Gained
- M&A deadline met successfully
- Cost savings through staff redeployment and outplacement
- Staff trained on more efficient manufacturing methods
- IT staff restructured with a proper IT strategy in place
- IT equipment upgraded and standardized across the merged entity
- Inventory database re-implemented on a platform that costs far less to maintain
Technology Involved
- Cisco-based network for LAN and WAN
- Smile Alpha (sales and accounting system)
- Custom eSolia applications for inventory data entry, replacing legacy programs and linking to the accounting system
- Dell equipment standardization for PCs and servers
For M&A-related IT projects in Japan, see our IT Due Diligence and Project Management services.