INDUSTRIALSECTORSIMPROVING YOUR RESULTS TODAY, SECURING YOUR RESULTS TOMORROWCredentials and track record1Your progression is our obsessionEFESO Consulting is a global management consultancy firm helping its clients progress faster and better. Over 400 consultants, operating from 26 offices, working in over 75 countries and representing more than 40 different nationalities currently support more than 900 progression programmes working in Tandem with our clients.Our progression motto “Improving results today, securing results for tomorrow” means achieving tangible business results faster and, at the same time, developing the capabilities, leadership and culture to continue to improve faster than competition in the future. We engineer the combination of continuous improvement, transformation and disruption approaches to yield the most effective and durable progression results. We look at and connect progression across the End to End Value Chain and from micro (the individual contributor) to macro (eco-system).Our progression approach combines strategic (orientation and prioritization) systemic (changing the DNA of the functioning of a company in a sustainable way) and specific (tangible specific results) interventions.To improve the results of today and secure the results for tomorrow we address at the same time 4 Dynamics: Our people bring together hands-on experience and expertise spanning a wide range of sectors and functional capabilities. The success of the EFESO approach is reflected by our 90% client retention. “Coming together is a beginning, keeping together is progress, working together is success” - Henry Ford For more information check our website: www.efeso.comValue Dynamics - Exploiting the fast changing patterns of value creation to focus on what will really make the difference in terms of quality, functionality, experience, time to marketFlow Dynamics - Understanding how to streamline activities to deliver the target valueAsset Dynamics - Ensure the optimization of the lifecycle and value/cost ratio of key assets such as machines, data, brands, intellectual propertyHuman Dynamics - Enhance the competence, commitment and culture of your people exploiting adoption, anchoring and leadership expertise1234The global industrials market is in a state of continuous flux where only the ones able to adapt fast will eventually dictate what their rivals will be doing.Customer evolutions lead to new ways to deliver value. New economies mean new customers and also serve as a source of low-cost production. Adaptation of new technology and methods allows for breakthrough innovations.Manufacturing will continue to be a source of value as new consumers demand new products with different features and prices, forcing industrial companies to manage their end to end process continuously. Value for money for customers continues to be mandatory. Increased complexity is a given, knowing that how to deal with this complexity in a profitable way will become a differentiator. Additionally, manufacturing is evolving to include more elements of the value chain to serve clients in the best possible way. This means that, in addition to World Class initiatives at site level there will be a constant need for productivity gains in innovation & product development, suppliers, supply chain and NPD. In order to remain in a leading position companies will need more agile operations. It means being able to catch and create continuous improvement opportunities day in day out, including joining forces with suppliers, customers, and any other actor in their ecosystem. Companies with agile and integrated operations can respond faster to volatility, and are better equipped to absorb possible disruptions. Companies that want to win will develop new operational capabilities and methods to better manage their value-chains and NPD processes. This means better cross-functional and cross-geography collaboration.With regards to manufacturing footprint there are more factors to consider than ever. Make-or-buy? Where to make? How to optimise Cost-to-Serve and generate results in the top and bottom-lines of companies while keeping customers delighted? The answers to key questions such as where to locate plants, or whether to automate will often shift. Advances in resource efficiency promise to cut the use of materials and energy. The use of big data will enable substantial improvements in how companies respond to customer needs and how they manage their operations. Industrial companies need to continue the relentless drive for productivity improvements. The pursuit of lean manufacturing processes is not finished. It needs to include behavioral aspects. For instance Performance Behavior, which means measuring behavior in relation to operational performance, can be a game changer. Daily review of observed behaviors and coaching and facilitating shop floor and top floor leaders to demonstrate the required and desired behavior day in day for optimal performance must become part of every element of the value chain. Industrial manufacturing companies must be able to successfully organize and operate in fundamentally different ways to ensure continued profitable results. They must be agile, able to collaborate with partners in their value chains, improve performance both of operations and human assets and become and remain workplaces that attract and retain new talent. In summary, they need to be World Class in their chosen fields to be able to progress continuously. “Industrial manufacturing companies must be able to successfully organize and operate in fundamentally different ways to ensure continued profitable results” Ourperspectiveon theIndustrialSectorsAEROSPACE & DEFENSEAUTOMOTIVEENGINEERING & CONSTRUCTIONEQUIPMENT & MACHINERYHIGH TECH MANUFACTURINGINDUSTRIAL MANUFACTURING3Partners for Progression ExcellenceWe help organisations to deal effectively with one of the most important enablers for performance improvement: the Human Dynamics. Working from topfloor to shopfloor we help to engage the organisation on the change journey.• Adoption - Leadership and workforce mobilization - Vision deployment and operationalization, communication strategy, mobilization events.• Leadership - Leading Performance - Leadership values and behaviors, high-impact moments, coaching and facilitation.• Anchoring - Performance Behaviors - From shopfloor to topfloor: Performance Control System, Visual Management & Obeya room setup & coaching.Human DynamicsWe help organisations to assess and develop end-to-end innova-tion capabilities, as well as improving operational performance in R&D, New Product Development (NPD) and - introduction (NPI).• Lean/Agile development - SCRUM methodology, stage-gate process, Obeya room for Innovation and visual management.• Feasibility and portfolio management - Pipeline optimization/balancing, portfolio strategy and rationalization.• Early equipment management - Vertical process start-up, advanced project management for Engineering.Innovation ManagementWe help organisations to get the most value out of local and global operations by focusing on physical assets and industrial footprints to optimize the full lifecycle and set the framework for higher productivity and safety – taking the most important asset along: the people.• Operational Excellence - TPM, maintenance & operations excellence, WCOM™, Advanced process excellence/Lean Six Sigma & yield management.• Lab Excellence - Levelling strategy, performance & visual management, standard work.• Integrated Asset Management - capital deployment process, asset lifecycle management.• Program Management Office & Digital Knowledge Management - Portfolio & resource management, intelligent knowledge databases.Operations ManagementWe help organisations to get the most of their commercial engine – ensuring professional customer management, developing customer centric offers and increasing the efficiency of the execu-tion of the Marketing and Sales “shopfloor”.• High-Performance Growth Culture and Management - Growth of the company, aligning Growth management process to manage BAU vs. New Business vs. Breakthrough business.• Customer management - Share-of-Wallet, Key Account Management, Customer Touchpoint Management, Customer Journey Management.• Offering Management - Customer Value Management, Strategic Business Development, Product Life-cycle Management.• Marketing & Sales Execution - Simplicity, effectiveness and efficiency, Time Thieves Hunting, effective Customer Meetings, Competence Management.• Performance Behavior in Sales - Building a robust operational steering in sales, steering successful behaviors in high-impact moments.Sales & Marketing4We help leaders in all aspects of organisational effectiveness – including designing the organisational structure, developing high performance teams and structurally develop the human capital.• Organisational design - Organisational assessment & design, shared service organisation.• High Performance teams - Team mobilization and collaboration events, creating balanced profile of teams incl. DISC profiling, Belbin assessments. Organisational EffectivenessProgression patterns of leading industrial companies usually follow three stages of incremental Value generation:• Stage 1 - Excellence in each separate node of the Value Chain.• Stage 2 - Seamless integration of all separate operating nodes from Innovation to Sales.• Stage 3 - Excellence in the full Value Chain, with integration of all activities from suppliers to customers.Particularly for stages 2 and 3, Operations Strategy and End2End Value performance are at stake by leveraging:• Operational Strategy alignment & deployment.• Industrial footprint redesign.• Make or Buy.• Complexity Management.• Design to Value and Should Cost.• Industry 4.0.• Organisational effectiveness.Operations Strategy and Value Chain performanceWe work on all the value creation levers to deliver revenue increase, cost reduction and assets/ cash efficiency. We do this by identifying and eliminating “losses” and non-Value Added activ-ities and by optimizing and synchronizing critical dynamics in the value chain. • Value Chain Improvement - Complexity reduction, customer/ supplier synchronization, route-to-market.• Integrated Business Planning - S&OP progression, supply chain performance management.• Working Capital Optimisation - Inventory balance, order-to-cash improvement.Supply Chain ManagementWe help organisations to leverage external resources to generate maximum value for their business, eradicate losses and ensure optimal performance across the entire value chain. It implies a shift in focus from Price to Life Cycle Cost and Value.• Generating value - Integrating procurement into an End2End Value Chain perspective, Seeking Innovation and Continuous Improvement in all sourcing strategies, Involving suppliers in technology and product development.• Eradicate losses - Developing Design to Value and Should Cost capabilities, Working on End2End process optimisation.• Protect execution performance - Contract Management, Supplier risk management, Intellectual Property management, CSR and Eco responsibility.Procurement and Cost Management5CLIENT SITUATION & APPROACHOur client is a Manufacturer of polyurethane foam and polyure-thane adhesives and epoxy resins. The organisation was facing an increasingly competitive market environment, where only continuous innovation was helping to protect margin levels. We supported with:• Development and implementation of objective evaluation systems of ongoing development projects.• Review and re-prioritization of the development project portfolio to focus resources.• Training in SCRUM methodology and coaching of application (incl. visual planning boards, SCRUM sprint approach etc.).• Design and setup of management system to steer progress of development projects and evaluate/initiate new projects when required.RESULTS:• Reduction of development project time by more than 80%.• Increase of OTIF level of projects by more than 30%.• Significant increase of successful completion level of development projects.Delivering tangible business valueCLIENT SITUATION & APPROACHThe company is one of the world’s largest steel producers and manufacturer of stair lifts. Our client is the group’s major manufac-turing site for stair lifts. With a global group revenue of € 6,2 billion, the company needs to remain price competitive.We supported the client to decrease the costs per lift, with a focus on 2 important levers:• Performance Behavior of all employees in the production and supporting departments to increase their ownership. • Decreasing quality failures and therewith decreasing average costs per product.RESULTS:• 14% Reduction of man hours per lift and 30% reduction of cost of poor quality (rework, ….) realized well within scheduled program time frame.• Active steering and accounting from the shop floor onwards in the complete production area.• Increased ownership and participation in operational improvements at all levels.• Culture of coaching, teaming and giving feedback, clearly linked to the drive and willingness to get results.Innovation Lean/Agile developmentHuman Dynamics Performance BehaviorCLIENT SITUATION & APPROACHGlobal manufacturer of helicopters, wanted to profitably increase market shares in both mature market segments and innovative niches. Investment in key Design to Value initiatives on two main product platforms, one dating back 20 years and one game changer in the industry. We supported in:• Addressing the overall product structures, on both make and buy and assessing the cost reduction potential of both product platforms.• Evaluating best improvement strategies and solutions for components and airframe, combining (re-)negotiation, (re-)sourcing, (re-)industrialization, (re-)design.• Implementing cost reduction programs.RESULTS:• For the existing platform, more than 20% of product cost reduction, and gap closed with target cost enabling to profitably win new contracts. • For the new platform, more than 25% cost reduction and financial viability ensured for the program business case, with sign-off of investments to finalize entry-into-service.• DTV/SC organizational unit set-up and capable to support product competitiveness in make and buy cost areas.CLIENT SITUATION & APPROACHSaint Gobain, the world’s largest building materials company embarked on a globalization program which radically changed the complexity of the organization, increasing the geographic spread and locations and the competitive landscape.To manage this successfully a World Class Manufacturing Programme (WCM) was designed, developed and launched to create results, build a common industrial culture, significantly increase strategic agility and empower the people at the shopfloor to develop their autonomy. A pilot was initiated involving 12 plants in different divisions and regions to build and implement the Saint-Gobain WCM model, followed by a global roll-out for all 250 plants.RESULTS:• Breakthrough results improvements in OEE, defects, breakdowns, WIP as well as safety record and environmental footprint• Cost reduction for more than 500 million Euro• More then 5000 Saint-Gobain employees use WCM every day to drive the next wave of improvement initiatives.Manufacturing ExcellenceWorld Class Manufacturing (WCM)ProcurementCost Management Excellence6CLIENT SITUATION & APPROACHA leading global company active in the development and manufac-turing of tires for automobiles, trucks, and motorcycles. Due to growing competition from emerging countries and from incumbent leaders, quality and differentiation have become critical success factors. In order to maintain competitiveness and operational excel-lence, a program was launched to address complexity costs and improve the capability to master complexity more efficiently by:• Developing a Complexity Total Cost Model to evaluate global cost of complexity and inform key decisions regarding product range, specs, materials, production allocation, factory planning, scheduling.• Identifying and implementing de-complexity initiatives.• Establishing a dedicated Complexity Management unit.RESULTS: • Over €100 million in Cost Reduction achieved.• Capabilities to autonomously continue and expand built.• Dedicated Complexity unit installed and operational.• Clear Guidelines and procedures defined to reduce existing complexity and limit new complexity.CLIENT SITUATION & APPROACHGlobal leader of mineral building materials. Eastern European market organization with growth target to double turnover in 5 years (CAGR of 11%) and to increase gross margin by +1 p.p. We supported the client in a pilot program with four core modules:• Performance Behavior in Sales.• Time Thieves hunting.• Effective Customer Meeting.• Share-of-Pocket based Growth planning and re-application versions of these routes.RESULTS:• Sales growth YoY 2015 to 2016 of 10%, in particular growth in existing client base, increased gross margin with 1,0 p.p.• Increased Share-of-Pocket in first target growth segment, increased number of sales visits, new customers.• People mind-set has completely changed, autonomous, drive• Next wave of improvement activities initiated.Value Chain ExcellenceComplexity ManagementCLIENT SITUATION & APPROACHThe global leader in water, hygiene and energy technologies and services. Clients in food service, food processing, hospitality, health-care, industrial, and oil and gas markets choose their products and services. Client need to control and better manage Total Delivered Cost (TDC). Raw materials spend of USD $3 billion equal to 42% of Cost Of Sales (COGS) - Inbound cost estimated 18M (0.25% of Cost of Sales). We supported the client to optimize inbound material total delivered cost through: • Development of loss analysis and eradication capabilities in the in bound value chain operation.• Generating savings on Inbound Materials.RESULTS:• Two dedicated cross-functional teams have been fully trained on the Loss Analysis and Eradication methodology.• The teams have successfully applied the methodology in two inbound projects in a four months period.• Processes have been mapped, analysed and main losses identified resulting in over €7.0M benefits.• Potential translated into 19 projects to be managed by designated teams. Implementation is ongoing into 2018.Supply Chain ManagementValue chain improvementCommercial EffectivenessPerformance Behavior in SalesCLIENT SITUATION & APPROACHOur client is a leading European company. The organization had undergone a global Manufacturing Excellence program but was concerned about the existing structure to capture and sharing of knowledge around problem solving. We introduced Solvace, a collaborative problem solving platform that learns from each problem and connects the dots within the organi-zation through machine learning.We used the following approach:• Demonstrate Solvace value at the largest plant within a focused team (ca.10 maintenance & production engineers / technicians), digitizing problem solving process.• Roll-out Solvace in an organic way across the organization, using online training and coaching by change agents.RESULTS:• More problems solved (access to the right experts, deeper analysis, more rigorous action plan follow-up). • Less bureaucracy (paperless, centralized monitoring and reporting)• Knowledge capitalization (captures 100% of each problem solving initiative from start to finish).Operations ManagementDigital knowledge management & problem solving7Copyright © 2018 EFESO ConsultingCALL US AT +33 1 53 53 57 00 OR LET US KNOW ABOUT YOUR CHALLENGE VIA INFO.MARKETING@EFESO.COMTokyoStockholmSingaporeSeoulShanghaiSão PauloSaint PetersburgRiyadhParisNew YorkNew DelhiMilanMexico CityLisbonIstanbulGothenburgGalwayCairoBirminghamBuenos AiresBudapestBrusselsBerlinBarcelonaAmsterdamAbu DhabiEFESO Consulting brings more than 35 years’ experience and thought leadership, supporting many of the leading global brands in both mature and emerging markets.EFESO Consulting is a group of over 400 experienced consultants representing 45 nationalities. It operates from 26 offices around the world with a strong presence in Europe, USA, South America, Middle East, Africa and Asia.An international scope and local delivery capability ensures that clients have access to the specialist skills they require whether at national, regional or global levels.Next >