Background

The company is listed on the stock-exchange and is a world leader in the manufacture of domestic and professional appliances, selling more than 40 million products annually worldwide. It has more than 50,000 employees and operates in 150 countries.

The Research and Development (R&D) department of small domestic appliances division employs approximately 200 development engineers who, for historical rather than operational reasons, were clustered at a regional level. The task was to develop a long-term strategy for an integrated R&D organisation which could deliver new products to meet global, national and regional customer needs. By developing and analysing three scenarios, ManTec presented a vision for a future organisation, new ways of working and holistic governance.

Implementation

Following initial definition of the company’s current structure, focus areas and interfaces, critical success factors for the analysis were agreed. Key employees from all regions were interviewed and data was collected internally, from competitors, and from other companies in a similar situation. Then three initial scenarios were developed through a series of workshops.

The next step was a structured assessment using SWOT (ie analysis focusing on Strengths, Weaknesses, Opportunities and Threats), benchmarking, further interviews and stakeholder and risk analyses. These analyses were conducted in a fashion which demonstrated a clear understanding of the complex environment in which they were carried out, requiring sensitivity to geography, culture and stakeholders.

During workshops the models were further developed, named “to be” – within the themes of “process”, “organisation” and “governance”. The “to be” was then simulated in detail with salary, relocation, and expatriates costs, and figures for profitability.

Supported by a detailed report, an extensive presentation was given to divisional senior management, who then decided to start a formal change programme based on the proposal. Within a few months, the restructuring was under way, with completion targeted for just one year after the decision point.

Results

Key benefits to the company of following through on the change programme have been:

• Streamlined global delivery of new products
• Consolidation from four to two R&D centres
• Clearer roles between marketing and product development
• Significant efficiency improvement within R&D

Background

The company is listed on the stock-exchange and is a world leader in the manufacture of domestic and professional appliances, selling more than 40 million products annually worldwide. It has more than 50,000 employees and operates in 150 countries.

The Research and Development (R&D) department of small domestic appliances division employs approximately 200 development engineers who, for historical rather than operational reasons, were clustered at a regional level. The task was to develop a long-term strategy for an integrated R&D organisation which could deliver new products to meet global, national and regional customer needs. By developing and analysing three scenarios, ManTec presented a vision for a future organisation, new ways of working and holistic governance.

Implementation

Following initial definition of the company’s current structure, focus areas and interfaces, critical success factors for the analysis were agreed. Key employees from all regions were interviewed and data was collected internally, from competitors, and from other companies in a similar situation. Then three initial scenarios were developed through a series of workshops.

The next step was a structured assessment using SWOT (ie analysis focusing on Strengths, Weaknesses, Opportunities and Threats), benchmarking, further interviews and stakeholder and risk analyses. These analyses were conducted in a fashion which demonstrated a clear understanding of the complex environment in which they were carried out, requiring sensitivity to geography, culture and stakeholders.

During workshops the models were further developed, named “to be” – within the themes of “process”, “organisation” and “governance”. The “to be” was then simulated in detail with salary, relocation, and expatriates costs, and figures for profitability.

Supported by a detailed report, an extensive presentation was given to divisional senior management, who then decided to start a formal change programme based on the proposal. Within a few months, the restructuring was under way, with completion targeted for just one year after the decision point.

Results

Key benefits to the company of following through on the change programme have been:

• Streamlined global delivery of new products
• Consolidation from four to two R&D centres
• Clearer roles between marketing and product development
• Significant efficiency improvement within R&D

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:

• inc reased 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 produces the world’s largest container vessels, employs 3,500 people and has a turnover of EUR 600 million. The company is a part of a corporate group that in total employs 110,000 people in 125 countries.

The company had for a number of years produced vessels exclusively for its parent company, but was about to commence producing vessels for other ship owners. Further, due to hard competition and depressed cargo prices, it was imperative to become competitive with vessels produced in the East, and the company turned to Mantec for help.

Implementation

During the initial analysis, a large number of people at various organisational levels were interviewed. Process mappings were executed, analysis of the management system was performed and the client’s view on management was documented.

The findings concluded need for the following activities related to Research and Development (R&D):

• Establishment of a new R&D organisation with focus on:
• process (defining and implementing new processes);
• new project-driven development methods;
• R&D follow-up based on well defined milestones.
• Major changes to the existing R&D department:
• establishment of “process owners” and process development;
• establishment of a new information system;
• establishment of a new computer-aided design system;
• establishment of specific “hand over procedures”, when customers specify a ship.
• KPIs for the whole R&D area.

The solutions were developed in close cooperation with the management team (including the R&D manager) and the people and culture manager of the yard.

Results

Headline benefits to the client have been:

• implementation of a management system that continuously supplies information on R&D performance; 
• reduction in numbers of warehouse staff;
• a higher degree of customer orientation throughout the whole organisation;
• project teams more skilled and motivated;
• new efficient and business-focused R&D organisation;
• clear strategic direction for the future (ability to handle and work with other customers and other ship classes);
• concrete action plans in place and well-defined tools for the changes needed; and
• establishment of a “continuous improvement” culture in the R&D area, where there always are new improvement projects in place.

Background

The company is part of a Swedish group which has more than 13,000 employees and is listed on the Swedish Stock exchange. It has approximately 1,000 employees including 600 engaged in Research and Development (R&D). A multi-site company with R&D and Production in four plants, its business is advanced technological products and systems for a demanding global market.

The company wanted to improve its business in the total Supply Chain, and asked Mantec to undertake a pre-study in Development & Technology. This was carried out using a combination of analysis and workshops with the management team in order to define areas of improvement. The main finding was that connections between line and project management were weak, which led to lack of control of projects and unclear roles and responsibilities.

Implementation

Based upon the pre-study findings, a project was defined jointly between Mantec and the client with the following objectives:

• reduce time to market;
• reduce lead times;
• improve project control (delivery performance and cost); and
• improve planning and cost calculation of projects.

Time to Market was addressed by improving the configuration of product structures and management itself, as well as the organisation of engineering changes.

Lead times and project control were improved by breaking down company goals and deploying them to the relevant levels throughout the organisation. This gave the management team better control, and the objectives of middle and first line managers were clarified. In addition, a Visual Management System was implemented, which enabled first line managers to get more involved and communicate better with project teams.

The need for more precise planning and calculation of all projects was addressed by setting up a Project Office. This enabled more effective organisation and better communication with Marketing and Sales.

Throughout the project, work on the main objectives was supported by group work and one-on-one coaching to improve leadership values and attitudes at all levels, and this was consolidated in the overall company by conducting workshops with the management team.

Results

The main benefits to the client of successfully implementing the project have been:

• delivery performance has improved from 70% to 95%; and
• overrun on projects has decreased accordingly.

The improvements correspond to a project ROI of between 300% and 400%.