Basic Metals

manufacturing strategy

Lean Resources

In the study results below, eight companies that produce a certain basic metal were studied by the Boston Consulting Group. Their operating margin was compared to their size (as measured in sales) and focus (as measured by the number of product lines).


This chart indicates that size is a major factor in profitability. Smaller companies have higher margins in the industry. But, the data is highly scattered suggesting that other factors are also at work.	This chart indicates that the number of product lines has a more direct influence. The slope of the linear regression line is slightly steeper than the line for size and there is less scatter in the data. Adapted from: Hayes, Robert H., & Wheelwright, Steven C., *Restoring Our Competitive Edge*, Wiley, 1984

Other Studies

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Reduced Overhead In Focused Factories
Multi-Division Companies
Steel Foundry Focus
Basic Metals
Workcell Level Focus

Profitability In Basic Metals

Other Studies