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:
Workshops led by Mantec carried out process-mapping of:
Problems and bottlenecks in the processes soon became evident and were the result of:
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:
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:
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:
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:
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.
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:
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.
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