CASE STUDY 03
INVAMAX FOS | Operating Model Transformation

Operating Model Transformation at a Pencil Factory

From Mini Factory management to specialized process-based management

At a pencil manufacturing facility, the operating model was restructured from Mini Factory (MF) management to specialized process-based management, simplifying managerial roles, boosting resource balancing agility, and optimizing 7 personnel.

6 → 4
Direct Management Positions
−5 operators
Headcount in Rough Stage
$35,734 / year
Improvement Value
Pencil Manufacturing Case Study

The problem lies not in the operation itself, but in how it is organized

Prior to improvement, the factory had 6 Mini Factories (MFs). Each MF leader was responsible for all 4 processes within their Mini Factory.

This siloed structure created critical operational bottlenecks:

  • Overall MF throughput was constrained by the lowest-performing internal process.
  • Cross-process labor and tooling were rigid and difficult to dynamically balance.
  • Production scheduling was sub-optimized with high variance across units.
  • Each MF leader was stretched thin across fundamentally different technical domains.
  • Operating 6 Mini Factories required 6 full-time MF leaders.

Operating Model Redesign

BEFORE — Vertical Management by Mini Factory

6 Mini Factory × 1 MF Leader × 4 Process
MF #1
1 MF Leader
Process 1
Process 2
Process 3
Process 4
MF #2
1 MF Leader
Process 1
Process 2
Process 3
Process 4
MF #3
1 MF Leader
Process 1
Process 2
Process 3
Process 4
MF #4
1 MF Leader
Process 1
Process 2
Process 3
Process 4
MF #5
1 MF Leader
Process 1
Process 2
Process 3
Process 4
MF #6
1 MF Leader
Process 1
Process 2
Process 3
Process 4
6 Mini Factory → 6 MF Leaders
Each leader had to juggle all distinct stages within their isolated Mini Factory.

AFTER — Horizontal Management by Process

4 Process Leaders × 4 Process × 6 Mini Factory
Process Leader 1
Manages Process 1
MF #1
MF #2
MF #3
MF #4
MF #5
MF #6
Process Leader 2
Manages Process 2
MF #1
MF #2
MF #3
MF #4
MF #5
MF #6
Process Leader 3
Manages Process 3
MF #1
MF #2
MF #3
MF #4
MF #5
MF #6
Process Leader 4
Manages Process 4
MF #1
MF #2
MF #3
MF #4
MF #5
MF #6
4 Core Processes → 4 Process Leaders → Streamlined governance across all 6 lines
  • Centralized Governance
  • Easier Productivity Optimization
  • Agile Resource Allocation
  • Simplified Leadership Focus

Results after Redesigning the Operating Model

6 → 4

Direct Management Positions

Eliminated 2 overhead management layers.

−5

Headcount in Rough Stage

Optimized 5 operator headcount via synchronized process flow.

7 headcount

Total Headcount Optimized

Equivalent to $35,734 / year
(Converted from audited baseline project data)

Why is the new model more effective?

Specialized Leadership

Leaders specialize in one distinct process rather than juggling disparate operational activities.

Agile Resource Balancing

Resources can be easily balanced across lines based on actual real-time demand.

Transparent Capacity Planning

Capacity is evaluated across the entire process rather than fragmented across isolated units.

Lean Operating Model

Reduces redundant management layers and narrows excessive control spans for leaner execution.

“When the operational structure no longer fits, micro-optimizing tasks is not enough.
You must redesign the Operating Model itself.”

Is your factory organized based on history or actual workflow?

The right organizational model empowers plants to balance resources seamlessly, visualize capacity clearly, and eliminate isolated departmental silos.