Business challenge
Our client had 2 crucial production sites in the European Network, both physically in The Netherlands, that had potential for significant performance improvement. A catalyst for change was required. Accelerant Consulting was tasked to restore accountability and improve cost control through process alignment.
Process
Thorough analysis revealed that there was significant improvement possible:
- Improved production output
- Decreased energy usage
- Optimized logistics cost
- Improved maintenance efficiency
- Optimized procurement spend
Operational Strategy and Transformation
In order to be able to deliver successfully on the challenges set, the first phase consisted of translation into an Operational Strategy fit for the organization. This meant designing processes, defining ways of working, and making sure the stakeholders were involved and capable to deliver on the goals set. To secure successful transformation the program was underpinned by a solid Program and Performance Management structure.
Program and Performance Management
Improved Program management was essential to ensure alignment between the two plants involved in the Catalyst Program. A lot of benefits could be realized by sharing best practices and making these the standard for both plants.
Standardized Performance Management was achieved though design and implementation of best practice processes with clear KPI’s. A structured management and reporting system was implemented to make sure that all stakeholders would speak the same language when discussing results and performance.
Asset Life Cycle Management
The Catalyst team created links between Production and Maintenance departments to create understanding for interdependencies influencing output and results. The result was a significant increase of overall plant performance. To turn this increase in performance into hard currency the Supply Chain function was involved in the Catalyst project. The connection of customer demand to weekly and daily production performance led to strategic insights into decreased inventory levels and increased ability to manage product switches.
Variable Cost Optimization
Procurement spend was restructured based on the implementation of a robust Vendor Management System. The improved procurement processes immediately delivered financial benefits.