The deployment of Operational Excellence combines the Strategy System, the Management System, the Performance System, and the Leadership system. When implemented completely, the results for one client yielded greater than 90% EBITDA increases two consecutive years.
Client Value – $78.3 million
With an excess of work in process inventory in front of the final test operation, the team mapped the process and identify the optimal level of inventory. The 80% reduction in inventory was beyond what the leadership expected from this project.
Client Value – $9.8 million
The new facility had only been in operation for two years. The investment was considerable. The complex equipment was only the third of its kind installed in the world. The problem was the operation had never been on schedule. Operational Excellence stepped in to transform the operation, and within six weeks the plant was running on schedule for the first time in its operations. “We never believed it was possible.”
Client Value – $12 million
The paint system had run inefficiently for 27 years. A $17 million investment was planned to replace it. When the value stream transformation was initiated and the five sub-projects were completed, a two-shift operation had been reduced to a single shift, while handling a 40% increase in throughput. The cost reduction of 60% was also great surprise to the executive leadership.
Client Value – $19.2 million
The acquired company had knocked off its second plant manager in less than a year. When Operational Excellence was deployed this new manufacturing facility went from last in the division to first in safety performance and recovered on time delivery from less than 60% to 98%. The performance allowed for a $20 million expansion and increased performance and profits for many years.
Client Value – $18.6 million
Applying Operational Excellence in the design space is not out of bounds. Standardizing the manufacturing processes through modeling and optimization, significant cost savings were pulled through to production. By standardizing and connecting the design function with the manufacturing processes the time from design to delivery was reduced and significant cost savings were achieved. 25% to 35% reductions and earlier production start-up was achieved.
Client Value – $500 million
An HR executive wanted to continue building a high-performance culture by adding a deeper focus on process. She elected to provide the Management and Leadership Systems training with additional coaching for her team.
Client Value – Incalculable increase in discretionary effort.
When repair parts orders began to climb, the gap in production capacity was quickly realized. The Operational Excellence Performance System was applied, and soon additional capacity was brought online. The response from the president of the company, “We have never made this much money in a single repair part season in our history.”
Client Value – 200% topline revenue and recovered market reputation.
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