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Rapid growth is causing problems for capital goods producer

Challenge

Our client, a global leader in the field of engineered capital goods for energy and telecoms, was facing a strongly increasing demand after an economic  downturn and was struggling with production reliability at all stages of the production process.

The unreliability led to falling output, less time for equipment maintenance and delivery unreliability to their clients.

Therefore, the situation had to be brought under control quickly.

Approach:

As each of the supervisors had a very different vision of what he was trying to achieve, our starting point was to create a detailed, tangible, operational vision of production: what it would look like, how it should be run.

Together we turned this in well-designed production management system, a set of improvement targets and an implementation plan. This approach generated a lot of energy and a strong desire for change.

During the implementation the atmosphere in the factory changed quickly from finger-pointing to a more contructive one of cooperation and joint responsibility. The plant’s performance stabilised and halfway into the project, the annual production output was ahead of budget and payroll costs were below target.

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32% More output without CAPEX

22% reduction in payroll costs.

€3.5 million lower cost of poor quality.

The factory was awarded the accolade of being the best factory in the global division.