Background

The client is part of a large international conglomerate which develops customer-adapted products. This part manufactures electronic components to cars. Although the expected product lifecycle including stock keeping of spare parts exceeds fifteen years, the target market has a short period of handling quotations. In addition, profitability depends heavily upon the ability to initially offer the right price.

Mantec was brought in to analyse and improve the handling quotations and product development process. The total amount of risk associated with these processes was estimated to be several million dollars.

Implementation

During an intensive pre-study period of three weeks, management from all levels was interviewed, processes were mapped, management information systems were analysed and the organisation's view on management and leadership evaluated. Furthermore, statistics regarding cost relations and trends were processed.

Using the results of the pre-study as a base, the company and Mantec jointly entered into a project to develop and implement new processes and new methods of working. Key focus areas were:

• project startup - the transfer of objectives and processes from a product development project to production;
• material management - material dictates the majority of product cost;
• investments - how to approach and control project-related investment;
• alterations in description - how to prevent internal and external conditions and variations adversely affecting the management of a project; and
• project follow-up - costs and revenues derived from the project are central but even more important is to monitor the future profitability of the product being developed.

Workshops led by Mantec carried out process-mapping of:

• the progression from customer demand to internal decision making, to customer offer and finally negotiations and contracts;
• transfer between project organisation and operations; and
• project management and management information systems.

Problems and bottlenecks in the processes soon became evident and were the result of:

• lack of explicit specifications;
• vague interfaces;
• lack of distinct procedures when transferring project between units;
• indistinct responsibilities and authorisations; and
• insufficient follow-up.

The outcome of the project was a new core process covering the complete commercial process, from quotation to project termination, which was accepted and welcomed by the company's highly committed management staff.

In addition, a new management report for continuous follow-up of profitability of projects and products was created, and to strengthen internal business culture, a training and coaching programme for project managers and assistant managers was designed and implemented.

Results

The main benefits brought to the company by the successful implementation of the project were:

• increased process reliability, by controlling all activities from start to end;
• increased understanding of which internal and external factors affect successful product development project; and
• increased ability, through continuous follow-up on these factors, for management to act when deviations occur.

The combined effect of these benefits was that contribution margins increased, both on the products already in production and the products scheduled to be produced.

Background

The company is part of a larger group and a global supplier to the automotive industry. Its cooperation with Mantec started with a three-week pre-study analysing operations, during which the following problems were identified:

• production lacked proper planning and follow-up;
• existing plans were not updated to take into account capacity and available time;
• no corrective measures were taken with lagging orders;
• focus and cross-functional cooperation was missing from the management group (which was new) and the shop floor; and
• discipline was lacking.

Implementation

After the pre-study the client decided to work with Mantec in a project designed to realise the identified improvement potential. The cornerstones of the project were:

• increased understanding of the production process;
• improved planning;
• increased availability in production (increased capacity); and
• improved work discipline.

Key focus areas for the project were:

Increased availability and understanding of the production process

A new method for problem solving was introduced. At the same time a cross-functional group was set up with the remit to come up with ideas to increase available time and lower cycle times. More than 200 actions were implemented as a result, and the group also made recommendations on how co-workers should act in different situations.

Discipline

A great deal of effort was put into changing staff behaviour at the lines, which at the start of the project was not satisfactory. Supervisory functions were trained in how to manage daily work and deal with confrontation.

Management system

A management system containing goals, reports and a structured schedule of meetings was implemented to better control operations. This involved creating a common platform for structured data collection and measuring principles. Thereafter plans were updated to reflect the new and more accurate data, for example slack and security margins were removed. Finally a system for deviation handling was developed and implemented through a follow-up process containing appropriate reports and structured meetings.

Training

To help first line managers cope with the new and tougher demands, a number of workshops were conducted and followed up with individual coaching. The training material included details of management systems, planning, production follow-up, and ways of dealing with confrontation.

Results

The new management system now serves as a base for driving corrective measures and continuous improvements, and has created a new level for the work around productivity. All employees now have a better understanding of their own processes, productivity and use of the management system, as well as an increased understanding of other processes throughout the organisation.

Headline benefit to the client has been that it has exceeded its own tough goals of a 25% increase in volumes and a 30% reduction in direct salary costs.

Background

The company is a leading supplier to the automotive industry and market conditions were such that over the next two years produced volumes were to be doubled. In addition to the already high demands of the industry the goal was also to cut costs by 50% per produced unit during the same period.

Cooperation with ManTec began with a pre-study to identify improvement possibilities. This was completed over two weeks, and confirmed weaknesses such as:

• production managers and supervisors were lacking competence on how to address fluctuating production pace and time losses;
• production leaders putting too much time into meetings and administration, and as a result seldom being in production;
• lack of focus on lagging orders and corrective measures to get back to plan;
• lack of cross-functional work to eliminate stops and rejects; and
• laid plans not being updated, and not taking in consideration known variations in capacity and actual available time.

Implementation

After the pre-study the company decided to enter into a joint project with ManTec, aimed at improving steering and productivity as well as eliminating costs associated with quality flaws. The project focused on four areas:

Management system

A common platform for structured data collection and measuring principles was created. This meant that laid plans could be updated to reflect new and more accurate data for example, slack and security margins could be removed. Finally, a follow-up structure was developed and implemented.

Operational use

Putting the management system into operational use was carried out in two steps. Daily deviation handling based on lagging orders and follow-up based on existing plans started immediately. Thereafter the new management structure and reporting were implemented. This involved training the organisation in how daily production and follow-up meetings should be run, how methods and routines to analyse reasons for deviations can be used to help take corrective measures, and how do deal with confrontation with co- workers.

Shift change meetings were focused on giving feedback on the past shift production with regards to the speed of production throughput and volume. This data enabled the incoming foreman to adjust his plan to a new production goal.

Understanding of the production process

To help increase productivity a great deal of effort was put into reaching a common understanding of the production process, and what types of actions and behaviour affect it, both negatively and positively. Production leaders and foremen were trained, in workshops and one- to-one sessions, to better understand the production process, and how their actions can affect production throughput and availability. In addition, simple rules were created for operators and assembly personnel on the production lines.

Training

The new and tougher demands meant that first line managers needed to be able to take new actions, and they were therefore given training in leadership skills and how to deal with confrontation.

Results

The new management system and improved operational knowledge on how corrective measures can be taken now serve as a base for continuous improvement, and have created a new higher level for the work with productivity. All employees now have a better understanding of the part they play in the production cycle.

Headline benefits to the client have been that it has exceeded its own tough goals and in particular:

· productivity has increased by more than 30%; and

· assembly rejects have reduced by on average 45%.

Background

The company is a part of a large global industrial group which has about 22,000 employees and bases its operations on cutting-edge technology with polymer materials.

The operations of the company, focused on the automotive and oil and gas sectors, are a mix of unique short-term project-based contracts and long-term production contracts.

Years of increasing competition and tougher customer demands had led to increasingly unsatisfactory results in terms of profitability and delivery precision. The company was launching several actions to correct this negative trend, and Mantec was hired to assist in the improvement process.

Implementation

Initially, Mantec carried out a three-week analysis to identify potential areas for improvement. Based on the results, Mantec and the client jointly entered a six-month project which focused on the following seven areas.

• Strategy and Goals: an improved structure of operational Key Performance Indicators (KPIs) relevant to the company's strategy, together with performance goals, was designed and implemented.
• Operational Management Systems: an improved system of managing operations through meetings, plans, reports and the use of the KPIs was put in place.
• Organisation: organisational changes for better central coordination and local support of both production and planning were implemented.
• IT Support: changes in the ERP (Enterprise Resource Planning) and other support systems were logged and implemented.
• Planning and Forecasting: an integral way of planning was designed and implemented. This included the whole production chain as well as the support functions, and gave stronger focus to delivery precision and moving human resources between departments according to needs. In addition, planning was instituted in areas where it had previously been lacking.
• Production and Support Processes: the production process was mapped in detail and linked to supports such as planning, quality, tools and people. As a result of the mapping, specific actions were carried out for example improving specific production tooling in specified ways; designing and putting in place a whiteboard on the factory floor for better production follow-up; designing and putting in place management tools on the production floor for better project control.
• Management Training: practical management training was instituted to support the changes being put in place both during and after the project.

Results

Thanks to the structure of the project and very strong involvement of key managers, all involved parties consider the project a success. In particular:

• management at all levels is now much more in control of the complete delivery process;
• delivery precision has improved from a range of 60-80% to 95-100%;
• human resources are moved daily between departments according to production needs;
• during the project, total production volume increased by 16%, but the company was able, by relocating personnel between departments, to keep the overall personnel increase down to 2%;
• productivity has improved by 12% and the trend is up.

In addition, the company could still realise another 10% productivity improvement. The company's management is now handling continuous improvement on its own, and is winning the battle with small victories every month.