After investing heavily in factories and equipment the company wanted help to develop their organization, processes, and efficiency. Mantec helped out with this and results were strong, e.g. productivity increased with 25% and cooperation improved.
Background
The company, more than 100 years old, had many deeply entrenched routines and traditions. Although it made multi-million DKK investments over a period of about two years, these investments were primarily targeted at the technical aspects of the business, developing factories and operating equipment. Management decided it was time to examine organisational structures, business processes and efficiency, and turned to Mantec for assistance.
Implementation
The basic strategy of the implementation project was to involve the client, to create ownership of the changes which were made in production. This has resulted in the coordinator, middle managers, supervisors and other key personnel gaining extensive knowledge of the systems as they were developed and implemented in the production areas. An operational management system has been established, including measurements of Overall Equipment Effectiveness (OEE) for relevant equipment. Board meetings in all factory departments have been instituted, together with an improved planning tool and the creation of a culture based on information and cooperation between departments. On top of that, a management development programme has given managers a better understanding of their own resources and behaviour, and a realisation that increased cooperation between all departments is vital for success.
A system of reports for the board of directors has been implemented to regularly take the pulse of the production department and thereby give the client increased peace of mind on where we are.
Results
There were a number of benefits to the client of successfully implementing the Mantec project, both quantifiable and non-quantifiable. Directly quantifiable benefits have been:
- a yearly saving of DKK 11.6M, exceeding the project target of DKK 11M;
- project ROI of 250 %
- productivity increase of 23%
- overtime reduced by 15%.
- Other, less quantifiable benefits include:
- OEE implemented on primary production lines
- reduction of waste and higher yield on final products
- KPI’s established for all levels and areas
- better cooperation between technical department and production
- higher productivity in the technical department, and reduction of support from external suppliers
- better control of work orders in the technical department
- PTA established.
Eighteen months after the project was completed, the client held two audits and found that productivity was 30% higher than it had been when the project started. In addition, the company now has a strong culture of continuous improvement.
