Transforming a loss making site into a profitable strategic European hub
The Situation
Our client’s site was operating at 20% of historical capacity. Several issues existed:
- Declining poor performance and engrained, poor safety and performance management behaviours
- Declining market share in some products facing fierce Asian competition with lower unit costs
- Lack of coordination between internal sales companies and manufacturing supply chain
- Inadequate planning and reporting with ineffective execution control systems
- Limited use of short interval controls, KPIs and root cause analysis
- Very high levels of all types of inventory and low customer service levels
- Poor track record of delivering capital expenditure projects
Approach
- Developed and installed robust planning, production scheduling and customer service processes
- Implemented an effective execution control system that introduced short interval controls and KPIs with a focus on data driven performance
- Implementation of robust inventory, warehousing and logistics management processes and controls
- Established capital projects management and contractor management processes
- Deliver leadership and supervisory coaching to transform the performance management culture, focusing on achieving proactive safety and performance targets
Results
- Significantly higher levels of site performance (a 44% increase in On-time In Full (OTIF)) and increased levels of management control and consistency
- Robust long, medium and short term production plans
- Significantly lower levels of inventory (38% reduction)
- More effective and confident leadership team
- Increased workforce productivity (up 42%) utilised in a more cost-effective manner
- Improved communication and coordination between departments with common goals and objectives
- Short interval controls installed on all critical processes
- Creation of a continuous improvement system and culture
- Successful coordination and execution of strategic capital projects (on time and within budget)
