Development of a Group-Wide Digitalization Strategy Business Challenges Long lead times existed for the development of new products, and the new product pipeline was not transparent. Given that commodity products are used as raw materials, for which the prices have been rising, a better utilization of those (yield) was required. Due to the Client’s strong sales around the world, an increase in manufacturing capacity was needed. This had to be achieved by increasing efficiency, not by expanding. The advantages presented by the use of connected machinery across the globe had not yet resulted in an improvement in line speed through the consistent use of data. A group-wide digitalization strategy had not yet been defined, although plants had been working on this individually. A global IT/IoT architecture had not yet been defined, and diverse systems had been introduced. The organization of Industry 4.0 and the split of responsibilities were not clearly defined (especially between the plants and the group). Quality controls were being conducted differently across the different plants. Production planning and scheduling involved a high level of manual effort. Warehouse capacity was a bottleneck, which resulted in a need for frequent re-stocking. Approach The project started with a strategic alignment in collaboration with the company’s senior management team. We defined the key financial and strategic fields of action for the group-wide digitalization project. All results and activities taking place during the course of this project had to be clearly linked to one or more of these strategic fields of action. A project team of four consultants conducted assessments and identified the most beneficial digitalization initiatives for each plant individually. This activity took place alongside a gap analysis of the company’s current and future capabilities in a fully digitalized world. All this was consolidated across the group to generate the global roadmap and strategy. In addition, the organizational structure of the global digitalization team was drawn up. The project included the following steps: Strategic and financial planning with the senior management team Assessment of the digital maturity of five plants globally Definition and prioritization of digital use-cases, working alongside plant management teams Conceptual development of the technical solutions required Definition of the future IT architecture Development of individual roadmaps for each plant and consolidation into a corporate roadmap Development of the future organizational setup The Client Our Client is a leading premium chocolate manufacturer. Most of its manufacturing locations are in Europe and the USA and its end products are sold and enjoyed throughout the entire world. The challenge EFESO was brought in by the corporate Group to develop a digitalization strategy with a scope covering five plants globally. Many diverse digitalization initiatives had been driven by the plants individually, but a holistic strategy and an overarching IT/IoT architecture had not yet been defined. Industry: Food and Beverage Location: Global footprint Project duration: 4 months Expertise: Industry 4.0 Results

Read more: Development of a Group-Wide Digitalization Strategy

Development of a Group-Wide Digitalization Strategy Business Challenges Long lead times existed for the development of new products, and the new product pipeline was not transparent. Given that commodity products are used as raw materials, for which the prices have been rising, a better utilization of those (yield) was required. Due to the Client’s strong sales around the world, an increase in manufacturing capacity was needed. This had to be achieved by increasing efficiency, not by expanding. The advantages presented by the use of connected machinery across the globe had not yet resulted in an improvement in line speed through the consistent use of data. A group-wide digitalization strategy had not yet been defined, although plants had been working on this individually. A global IT/IoT architecture had not yet been defined, and diverse systems had been introduced. The organization of Industry 4.0 and the split of responsibilities were not clearly defined (especially between the plants and the group). Quality controls were being conducted differently across the different plants. Production planning and scheduling involved a high level of manual effort. Warehouse capacity was a bottleneck, which resulted in a need for frequent re-stocking. Approach The project started with a strategic alignment in collaboration with the company’s senior management team. We defined the key financial and strategic fields of action for the group-wide digitalization project. All results and activities taking place during the course of this project had to be clearly linked to one or more of these strategic fields of action. A project team of four consultants conducted assessments and identified the most beneficial digitalization initiatives for each plant individually. This activity took place alongside a gap analysis of the company’s current and future capabilities in a fully digitalized world. All this was consolidated across the group to generate the global roadmap and strategy. In addition, the organizational structure of the global digitalization team was drawn up. The project included the following steps: Strategic and financial planning with the senior management team Assessment of the digital maturity of five plants globally Definition and prioritization of digital use-cases, working alongside plant management teams Conceptual development of the technical solutions required Definition of the future IT architecture Development of individual roadmaps for each plant and consolidation into a corporate roadmap Development of the future organizational setup The Client Our Client is a leading premium chocolate manufacturer. Most of its manufacturing locations are in Europe and the USA and its end products are sold and enjoyed throughout the entire world. The challenge EFESO was brought in by the corporate Group to develop a digitalization strategy with a scope covering five plants globally. Many diverse digitalization initiatives had been driven by the plants individually, but a holistic strategy and an overarching IT/IoT architecture had not yet been defined. Industry: Food and Beverage Location: Global footprint Project duration: 4 months Expertise: Industry 4.0 Very effective exercise with a strict but necessary methodology that allowed to obtain significant results quickly. Industrial Director A project with an educational dimension allowing all participants to understand the composition of an industrial cost price. Industrial Director Results The redesign to value of the products, confirmed by a consumer survey, helped to gain significant savings. Some of the improvement areas: Example with one brand: 23 improvement ideas identified, 10 selected for a total of €1.3 M of projected savings (representing 11% annual costs). Half of which are Quick Wins. More than 20 people trained on the methodology.

Read more: Improving Customer Satisfaction Whilst Optimizing Costs Through Redesign to Value

Development of a Group-Wide Digitalization Strategy Business Challenges Long lead times existed for the development of new products, and the new product pipeline was not transparent. Given that commodity products are used as raw materials, for which the prices have been rising, a better utilization of those (yield) was required. Due to the Client’s strong sales around the world, an increase in manufacturing capacity was needed. This had to be achieved by increasing efficiency, not by expanding. The advantages presented by the use of connected machinery across the globe had not yet resulted in an improvement in line speed through the consistent use of data. A group-wide digitalization strategy had not yet been defined, although plants had been working on this individually. A global IT/IoT architecture had not yet been defined, and diverse systems had been introduced. The organization of Industry 4.0 and the split of responsibilities were not clearly defined (especially between the plants and the group). Quality controls were being conducted differently across the different plants. Production planning and scheduling involved a high level of manual effort. Warehouse capacity was a bottleneck, which resulted in a need for frequent re-stocking. Approach The project started with a strategic alignment in collaboration with the company’s senior management team. We defined the key financial and strategic fields of action for the group-wide digitalization project. All results and activities taking place during the course of this project had to be clearly linked to one or more of these strategic fields of action. A project team of four consultants conducted assessments and identified the most beneficial digitalization initiatives for each plant individually. This activity took place alongside a gap analysis of the company’s current and future capabilities in a fully digitalized world. All this was consolidated across the group to generate the global roadmap and strategy. In addition, the organizational structure of the global digitalization team was drawn up. The project included the following steps: Strategic and financial planning with the senior management team Assessment of the digital maturity of five plants globally Definition and prioritization of digital use-cases, working alongside plant management teams Conceptual development of the technical solutions required Definition of the future IT architecture Development of individual roadmaps for each plant and consolidation into a corporate roadmap Development of the future organizational setup The Client Our Client is a leading premium chocolate manufacturer. Most of its manufacturing locations are in Europe and the USA and its end products are sold and enjoyed throughout the entire world. The challenge EFESO was brought in by the corporate Group to develop a digitalization strategy with a scope covering five plants globally. Many diverse digitalization initiatives had been driven by the plants individually, but a holistic strategy and an overarching IT/IoT architecture had not yet been defined. Industry: Food and Beverage Location: Global footprint Project duration: 4 months Expertise: Industry 4.0 Results On completion of the two-month assessment, EFESO was able to demonstrate that it was possible for the Company to exceed its own ambitions and achieve a 100% increase in EBITDA (more than the 60% planned over 5 years). Furthermore, it could accelerate its growth and achieve this target 18-24 months sooner than initially anticipated. To enable the Company to achieve these results, EFESO outlined the necessary steps in an E2E value chain progression plan. This roadmap to growth highlighted the current constraints on the business and provided a clear gap analysis – covering each of the company’s core processes, together with the Human and Digital dynamics. These findings were then consolidated within a strategic plan that would enable the Company to bridge the gap between the current situation and its growth targets. The E2E value chain progression plan also detailed where and when CAPEX interventions would be required. This was all mapped on to progressive cycles, broken down into 3-month blocks. Each block was given a high and quick impact project that would provide a ‘power leap’. In addition to the plan, a ‘performance management tree’ was co-designed to help the Company connect its actions with the strategic plan. Quickly implemented using digital tools, this management tree enabled senior executives to see the impact of key decisions and how they would cascade through the E2E organization – all at the click of a button. Covering elements, such as portfolio management, complexity, and S&OP, the management tree broke this information down into meaningful metrics – to allow people to see what role they played in the E2E organization, how everything was connected and what actions they needed to take. EFESO is now working with the Company to deliver the plan and ensure the new measures stick for the long-term so the company can realize its growth targets.

Read more: Making the Company Fit for Growth

Development of a Group-Wide Digitalization Strategy Business Challenges Long lead times existed for the development of new products, and the new product pipeline was not transparent. Given that commodity products are used as raw materials, for which the prices have been rising, a better utilization of those (yield) was required. Due to the Client’s strong sales around the world, an increase in manufacturing capacity was needed. This had to be achieved by increasing efficiency, not by expanding. The advantages presented by the use of connected machinery across the globe had not yet resulted in an improvement in line speed through the consistent use of data. A group-wide digitalization strategy had not yet been defined, although plants had been working on this individually. A global IT/IoT architecture had not yet been defined, and diverse systems had been introduced. The organization of Industry 4.0 and the split of responsibilities were not clearly defined (especially between the plants and the group). Quality controls were being conducted differently across the different plants. Production planning and scheduling involved a high level of manual effort. Warehouse capacity was a bottleneck, which resulted in a need for frequent re-stocking. Approach The project started with a strategic alignment in collaboration with the company’s senior management team. We defined the key financial and strategic fields of action for the group-wide digitalization project. All results and activities taking place during the course of this project had to be clearly linked to one or more of these strategic fields of action. A project team of four consultants conducted assessments and identified the most beneficial digitalization initiatives for each plant individually. This activity took place alongside a gap analysis of the company’s current and future capabilities in a fully digitalized world. All this was consolidated across the group to generate the global roadmap and strategy. In addition, the organizational structure of the global digitalization team was drawn up. The project included the following steps: Strategic and financial planning with the senior management team Assessment of the digital maturity of five plants globally Definition and prioritization of digital use-cases, working alongside plant management teams Conceptual development of the technical solutions required Definition of the future IT architecture Development of individual roadmaps for each plant and consolidation into a corporate roadmap Development of the future organizational setup The Client Our Client is a leading premium chocolate manufacturer. Most of its manufacturing locations are in Europe and the USA and its end products are sold and enjoyed throughout the entire world. The challenge EFESO was brought in by the corporate Group to develop a digitalization strategy with a scope covering five plants globally. Many diverse digitalization initiatives had been driven by the plants individually, but a holistic strategy and an overarching IT/IoT architecture had not yet been defined. Industry: Food and Beverage Location: Global footprint Project duration: 4 months Expertise: Industry 4.0 This plant has a long list of failed capital projects not delivering on their objectives. Multipack Unwrapped has been the most successful capital investment project in This plant history so far. Results 40% reduction of failure downtime versus the target of 25% Adoption and Leadership by packaging department stakeholders at all levels Process Improvements to the Global EEM Pillar for future re-application along with connections to the internal Manufacturing System for long term sustainability Failure Mode and Root Cause Mindset leading to effective action implementation EEM Checklists created and applied during commissioning phase to ensure success is embedded: Safety - Operability – Maintenance – Flexibility - Autonomous maintenance

Read more: Achieving the best vertical start-up on site with a 40% reduction of failure downtime

Development of a Group-Wide Digitalization Strategy Business Challenges Long lead times existed for the development of new products, and the new product pipeline was not transparent. Given that commodity products are used as raw materials, for which the prices have been rising, a better utilization of those (yield) was required. Due to the Client’s strong sales around the world, an increase in manufacturing capacity was needed. This had to be achieved by increasing efficiency, not by expanding. The advantages presented by the use of connected machinery across the globe had not yet resulted in an improvement in line speed through the consistent use of data. A group-wide digitalization strategy had not yet been defined, although plants had been working on this individually. A global IT/IoT architecture had not yet been defined, and diverse systems had been introduced. The organization of Industry 4.0 and the split of responsibilities were not clearly defined (especially between the plants and the group). Quality controls were being conducted differently across the different plants. Production planning and scheduling involved a high level of manual effort. Warehouse capacity was a bottleneck, which resulted in a need for frequent re-stocking. Approach The project started with a strategic alignment in collaboration with the company’s senior management team. We defined the key financial and strategic fields of action for the group-wide digitalization project. All results and activities taking place during the course of this project had to be clearly linked to one or more of these strategic fields of action. A project team of four consultants conducted assessments and identified the most beneficial digitalization initiatives for each plant individually. This activity took place alongside a gap analysis of the company’s current and future capabilities in a fully digitalized world. All this was consolidated across the group to generate the global roadmap and strategy. In addition, the organizational structure of the global digitalization team was drawn up. The project included the following steps: Strategic and financial planning with the senior management team Assessment of the digital maturity of five plants globally Definition and prioritization of digital use-cases, working alongside plant management teams Conceptual development of the technical solutions required Definition of the future IT architecture Development of individual roadmaps for each plant and consolidation into a corporate roadmap Development of the future organizational setup The Client Our Client is a leading premium chocolate manufacturer. Most of its manufacturing locations are in Europe and the USA and its end products are sold and enjoyed throughout the entire world. The challenge EFESO was brought in by the corporate Group to develop a digitalization strategy with a scope covering five plants globally. Many diverse digitalization initiatives had been driven by the plants individually, but a holistic strategy and an overarching IT/IoT architecture had not yet been defined. Industry: Food and Beverage Location: Global footprint Project duration: 4 months Expertise: Industry 4.0 Results

Read more: Taking Predictive Maintenance from Business Case to Full Roll-Out

Development of a Group-Wide Digitalization Strategy The challenge Managing complexity and growth Long lead times existed for the development of new products, and the new product pipeline was not transparent. Given that commodity products are used as raw materials, for which the prices have been rising, a better utilization of those (yield) was required. Due to the Client’s strong sales around the world, an increase in manufacturing capacity was needed. This had to be achieved by increasing efficiency, not by expanding. The advantages presented by the use of connected machinery across the globe had not yet resulted in an improvement in line speed through the consistent use of data. A group-wide digitalization strategy had not yet been defined, although plants had been working on this individually. A global IT/IoT architecture had not yet been defined, and diverse systems had been introduced. The organization of Industry 4.0 and the split of responsibilities were not clearly defined (especially between the plants and the group). Quality controls were being conducted differently across the different plants. Production planning and scheduling involved a high level of manual effort. Warehouse capacity was a bottleneck, which resulted in a need for frequent re-stocking. The solution Synchronisation of the value chain The project started with a strategic alignment in collaboration with the company’s senior management team. We defined the key financial and strategic fields of action for the group-wide digitalization project. All results and activities taking place during the course of this project had to be clearly linked to one or more of these strategic fields of action. A project team of four consultants conducted assessments and identified the most beneficial digitalization initiatives for each plant individually. This activity took place alongside a gap analysis of the company’s current and future capabilities in a fully digitalized world. All this was consolidated across the group to generate the global roadmap and strategy. In addition, the organizational structure of the global digitalization team was drawn up. The project included the following steps: Strategic and financial planning with the senior management team Assessment of the digital maturity of five plants globally Definition and prioritization of digital use-cases, working alongside plant management teams Conceptual development of the technical solutions required Definition of the future IT architecture Development of individual roadmaps for each plant and consolidation into a corporate roadmap Development of the future organizational setup RESULTS Reduced response time leading to better shelf availability and faster replenishment WIP in production: -35 up to -50% Increase of value creation in development through faster prototyping and Knowledge reuse. Further loss reduction in technical department (process BPR and digitalization) Leveling of workload by setting the cadence of launches Industrialization Lead time reduction Synergy with design, early management of critical issues and sharing people for prototyping Production Lead time -35% Obsoletes in Supply Chain -30% The Client Our Client is a leading premium chocolate manufacturer. Most of its manufacturing locations are in Europe and the USA and its end products are sold and enjoyed throughout the entire world. Massimo Stefanello, former COO of Thelios says: The difference in working with EFESO is that together, in a very down to earth and joined up way, we managed to obtain serious improvements of our value chain, but it’s their focus on the human side of things which is a real asset in this type of projects. Industry: Food and Beverage Location: Global footprint Project duration: 4 months Expertise: Industry 4.0

Read more: Thelios Eyewear: WIP reduction by 35% by synchronizing the Value Chain

Development of a Group-Wide Digitalization Strategy The challenge Managing complexity and growth Long lead times existed for the development of new products, and the new product pipeline was not transparent. Given that commodity products are used as raw materials, for which the prices have been rising, a better utilization of those (yield) was required. Due to the Client’s strong sales around the world, an increase in manufacturing capacity was needed. This had to be achieved by increasing efficiency, not by expanding. The advantages presented by the use of connected machinery across the globe had not yet resulted in an improvement in line speed through the consistent use of data. A group-wide digitalization strategy had not yet been defined, although plants had been working on this individually. A global IT/IoT architecture had not yet been defined, and diverse systems had been introduced. The organization of Industry 4.0 and the split of responsibilities were not clearly defined (especially between the plants and the group). Quality controls were being conducted differently across the different plants. Production planning and scheduling involved a high level of manual effort. Warehouse capacity was a bottleneck, which resulted in a need for frequent re-stocking. The solution Synchronisation of the value chain The project started with a strategic alignment in collaboration with the company’s senior management team. We defined the key financial and strategic fields of action for the group-wide digitalization project. All results and activities taking place during the course of this project had to be clearly linked to one or more of these strategic fields of action. A project team of four consultants conducted assessments and identified the most beneficial digitalization initiatives for each plant individually. This activity took place alongside a gap analysis of the company’s current and future capabilities in a fully digitalized world. All this was consolidated across the group to generate the global roadmap and strategy. In addition, the organizational structure of the global digitalization team was drawn up. The project included the following steps: Strategic and financial planning with the senior management team Assessment of the digital maturity of five plants globally Definition and prioritization of digital use-cases, working alongside plant management teams Conceptual development of the technical solutions required Definition of the future IT architecture Development of individual roadmaps for each plant and consolidation into a corporate roadmap Development of the future organizational setup RESULTS The Client Our Client is a leading premium chocolate manufacturer. Most of its manufacturing locations are in Europe and the USA and its end products are sold and enjoyed throughout the entire world. Massimo Stefanello, former COO of Thelios says: The difference in working with EFESO is that together, in a very down to earth and joined up way, we managed to obtain serious improvements of our value chain, but it’s their focus on the human side of things which is a real asset in this type of projects. Industry: Food and Beverage Location: Global footprint Project duration: 4 months Expertise: Industry 4.0

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A major player in the chemical industry and the second-largest producer of PVC (Polyvinyl Chloride) in Europe. The group employs 1,400 people and generates approximately €1.2 billion in annual revenue. Their operations are primarily based in France.

Key challenges

• Assessment of the current situation in terms of maintenance and reliability at two different sites
• Identifying improvement opportunities and defining a detailer roadmap to reduce the gaps
• Aligning all stakeholders from local team to top management

Approach and key success factors

Phase 1: Rapid Assessment

• Analyzed value creation levers
• To identify key opportunities & high-level roadmap
• To support go/no go decision for operations improvements

Phase 2: In-depth Operational Analysis

• Quantified opportunities
• Aligned strategy management
• Developed a detailed, actionable roadmap per workstream.

Results that speak for themselves

Maintenance Efficiency Gains:

Uncovered several improvement opportunities through workshops and field observations. Key areas included flow management, work order prioritization, and performance management.

• Site 1: 20–25% FTE efficiency gain → €1–2M potential savings
• Site 2: 12–15% internal 15–17% subcontractor efficiency gains → €420–482K

Reliability Improvements:

Identified key levers such as bad actor management, implementation of Failure Modes and Effects Analysis (FMEA), and improvements to preventive maintenance plans, expected to significantly reduce technical production losses.

• Site 1: 30–55% reduction in technical production losses across two key product lines
• Site 2: 35–48% reduction in losses across two main production lines

The client is a civil and military aircraft Maintenance, Repair, and Overhaul (MRO) service provider operating in a demanding environment of stringent safety standards and tight turnaround schedules.

The client faced performance limitations that affected operational efficiency, turnaround times, and cost-effectiveness. They required a transformative program to boost their performance capabilities across MRO functions.

Approach

EFESO implemented an Operational Excellence Program tailored to the MRO industry. The initiative focused on streamlining processes, introducing lean practices, and enhancing workforce engagement. Key areas of impact included asset utilization, maintenance planning, and performance tracking.

Results

• Increased efficiency across maintenance operations
• Reduced turnaround times for aircraft servicing
• Enhanced workforce productivity and morale
• Improved compliance with safety and regulatory standards

The client is a leading aircraft engine manufacturer striving to improve efficiency and standardization across its research and development projects.

The organization experienced inefficiencies in R&D due to fragmented processes and a lack of standardized methodologies. This led to delays and increased costs in innovation delivery.

Approach

EFESO restructured the R&D project organization, introducing best practices for project portfolio management and aligning resources with strategic objectives. Emphasis was placed on cross-functional collaboration and digital project tracking tools.

Results

• Streamlined R&D project workflows
• Improved resource allocation and prioritization
• Enhanced collaboration between engineering teams
• Increased R&D output with reduced cycle time

The client is a company investing in a new, scalable, and highly automated manufacturing facility to meet increasing demand and enable future growth.

They needed support in designing a facility that integrated advanced automation while ensuring scalability and sustainability.

Approach

EFESO led the design and simulation of the new factory using digital twin technology. This included layout optimization, capacity planning, and integration of Industry 4.0 systems. Sustainability metrics were embedded from the start.

Results

• Successful design of a future-ready, automated factory
• High scalability potential to support long-term growth
• Built-in sustainability and energy efficiency measures
• Reduced setup time and launch risks through simulation

The client is an aerospace component manufacturer seeking significant cost reductions to improve competitiveness.

They were challenged by opaque supplier cost structures and lacked a systematic approach to cost management.

Approach

EFESO implemented a "Should Cost" analysis program to uncover cost-saving opportunities. The process involved detailed cost modeling, supplier negotiations, and transparency enhancements in procurement.

Results

• Identified 33% potential savings in supplier costs
• Realized 19% savings in the first negotiation round
• Improved cost visibility and negotiation leverage
• Enhanced procurement strategy and supplier management

A global manufacturer of plastic packaging solutions for consumer products employing more than 4,000 people and an annual turnover exceeding €380 million.

Key Challenges

• High number of customer complaints, with a risk of losing customers
• High frequency of process stops, initially reaching 300 per week
• Poor basic equipment conditions
• Lack of performance monitoring in daily operations
• Inadequate SOPs for key processes and insufficient process control

Approach & Key Success Factors

• Focused Potential Analysis
  • Duration: 3 weeks
  • Full integration of plant team and management
• Optimization approach covering all quality-related aspects
  • Equipment conditions and management
  • Processes and SOPs
  • Performance control system
  • Operator capabilities
• Boost progression cycle to 14 weeks
  • Systematic project management approach
  • Rigorous project governance with weekly management reviews
  • Plant team in the lead, supported by consultants on the shopfloor

Main Results

• Monthly customer complaints reduced by 44%
• Weekly process stops decreased by 56%
• Standardized PCS and performance metrics implemented
• Key SOPs optimized, incl. color change and start-up procedures
• Basic conditions restored for injection moulding machines
• Operator capability gaps significantly reduced

Our client is a multinational leader in packaging solutions, specializing in flexible, food, and fiber packaging. With operations in more than 30 countries and over 100 manufacturing plants worldwide, generating €4.2 billion in net sales annually. Positioned as a global specialist, they face an increasingly competitive industry, with challenges ranging from high material losses and inconsistent site practices to a need for a continuous improvement culture. Despite a strong focus on cost management, they sought sustainable, capability-building solutions to ensure lasting impact and resilience.

Key Challenges

• High material loss compared to industry benchmark and Material waste reduction forced by market downturn
• No standard way of working across sites
• No Continuous Improvement culture
• Difficulty in Cost Deployment approach adoption
• Difficulty in on-site delivery due to pandemic
• Very strong cost-focus, but struggling to give capability development the right priority, for securing sustainability of the savings

Approach & key success factors

• Design and implementation of a bespoke Operational Excellence Program with tighter focus on material waste reduction in 25 plants, in 23 countries, over 5 years
• Global academy implementation with remote & on-site delivery coaching technologies
• Standard loss analysis approach supported by dashboarding, including operational & financial benefits planning and tracking capability development
• Robust Program Management following the roll out of cost deployment from the start
• Focussed follow up and reporting governance
• Leadership development program.
• Implementation of a global assessment system, including plant, pillar and team assessments

Main results

• >40M€ savings
• >€200M€ losses identified
• Waste reduction for 4,5 million CO2 equivalents
• 1400 teams launched
• 9000 people coached and trained
• 200 certified trainers
• 88 improvement projects with an annual potential of 5,3M€ waste reduction

Our client is one of the world leaders in specialty chemicals, this company operates in more than 100 countries and employs over 33,000 people worldwide.

Key Challenges

• To describe the current situation of two sites of the client in terms of maintenance and reliability
• To identify gaps and areas of improvement and define a roadmap to reduce the gaps
• To align with local people, middle and top management

Approach

1st step, Rapid Assessment on two sites. The objectives were:

• To assess value creation levers
• To identify key opportunities & high-level roadmap
• To Support go/no go decision for operations improvements

2nd step, Operations Analysis on two sites. The objectives were:

• To determine and quantify opportunities (business case)
• To align strategy with top and middle management
• To detail the roadmap by workstream

The next step would be to implement the defined roadmap on the two sites where the operations’ analysis was made.

Results

Maintenance:

• Estimated efficiency gain for site 1: 20-25% on FTEs → 1-2M€ (to be negotiated with sub-contractors)
• Estimated efficiency gain for site 2: 12-15% (internal) 15-17% (subcontractor) → 420-482K€

Reliability:

• Site 1: Estimated reduction of the technical production losses by 30-40% (product 1) and 40-55% (product 2)
• Site 2: Estimated reduction of the technical production losses by 35-47% (line 1) and 40-48% (line 2)

Our client is a global chemical company with 12 sites worldwide, demonstrating a strong international presence and extensive operational capabilities.

Key Challenges

• Harmonize organization and ways of working after ownership change => integrate 2 “heritage” organizations
• Improve profitability and push both short-term results realization as well as improve organizational maturity
• Establish a common production system as to facilitate
  • the organizational integration,
  • exchange between sites
• and have a common approach to drive Operational Excellence

Approach

• Carry out scans at 12 sites globally in order to validate benefit potential and capture Quick Wins
• Develop site specific improvement roadmaps
• Customize a client-specific production system
• Develop an organizational blueprint for maintenance function to be rolled out into all sites
• Create communities of practice to drive collaboration across sites for core functions (e.g. for OPEX leaders, Maintenance validation board etc.)
• BOOST phases at wave 1 sites to validate production system and generate value
• Roll-out into remaining sites (following logic of BOOST // BUILD // Continuous Improvement)
• Set-up pillar structure for Autonomous Management (AM), Focused Improvements (FI) and Planned Maintenance (PM) trained PKEs (Process Kaizen Engineer)

Results

• Developed client-specific production system
• Trained 450 individuals that are now proficient in OPEX topics
• Developed roadmaps with €120M value potential identified
• Achieved 67 M€ bene-fits p.a.

I really appreciate the way of collaboration with EFESO – it really feels we are working as one team. We have been able to realize substantial benefits and developed our internal capability.

Global head of Operational Excellence

 

Our client is the Specialty Polymers site of a leading chemical company, generating over €10 billion in revenues and achieving an EBITDA of more than €2 billion, demonstrating strong financial performance and industry leadership.

Key Challenges

• Root causes identification & Advanced Problem Solving
• Loss reduction, as Losses summed up to more than 10 Million € (the reactor came to a standstill 4 times due to this process failure. The problems were so severe that output reduced to less than 50%)
• Client efforts were without success, the root cause(s) had not been identified, and the problem was not resolved

Approach

• EFESO put a team together consisting of Engineers in Chemical Technology and Applied Physics and problem solving experts
• For this complex problem the PM analysis was used, this very thorough approach looks at the Physical Phenomena to really understand the Mechanism of the problem
• After carefully excluding most possible causes the root cause was identified as related to the introduction of a new chemical used for lubrication and sealing in a pump upstream of the reactor
• Reversing the root-cause established a good stable high performance of the Urea reactor

Results

• Problem was fully eradicated
• Reactor performance is stable, high performance
• Root-cause identified and using causal effects
• Early indicators of the problem identified to monitor possible decay
• Internal change processes to prevent similar mistakes

In my 36-year career this is the most frustrating problem I have ever had to deal with. I would never have guessed that that was the root-cause

Senior Technologist Urea Factory

Our client is the Specialty Polymers site of a chemical company, with revenues exceeding €10 billion and an EBITDA greater than €2 billion. This demonstrates their strong market position and financial stability within the chemical industry.

Key Challenges

• Design, review and implement a new functional organisation in the Maintenance department
• Increase efficiency via a structured methodology to manage Work Order Process and maintenance activities
• Bottom line benefits objective of 2,1M€ in 3 years

Approach

• Review and enhance the internal Maintenance Excellence methodology, aligning it with local current and future organisation
• Define and validate the 1,5-year tactical implementation plan, generating local buy in and empowering local change agents
• Manage and coordinate the critical ramp up phase of implementation, providing coaching to maintenance team and to change agents (coach-the-coach approach)
• Support site management team in developing and embedding the required continuous improvement culture, and coach its use and dissemination

Results

• 260K€/y benefits achieved via overtime reduction and renegotiation of main contractors’ service-level agreements
• New organizational structure, roles & responsibilities, meeting cascade, KPIs implemented in the 3 maintenance areas, involving 100 employees
• PCS tools and methodologies validated, installed and coached on a daily basis

Our client is a chemical company and the second-largest producer of PVC (Polyvinyl Chloride) in Europe. The group employs 1,400 people and generates a turnover of around 1.2 billion euros. Its activities are primarily located in France, reflecting a strong national presence in the industry.

Key Challenges

• To describe the current situation of two sites of the client in terms of maintenance and reliability
• To identify gaps and areas of improvement and define a roadmap to reduce the gaps
• To align with local people, middle and top management

Approach

1st step, Rapid Assessment on two sites. The objectives were:

• To assess value creation levers
• To identify key opportunities & high-level roadmap
• To Support go/no go decision for operations improvements

2nd step, Operations Analysis on two sites. The objectives were:

• To determine and quantify opportunities (business case)
• To align strategy with top and middle management
• To detail the roadmap by workstream

The next step would be to implement the defined roadmap on the two sites where the operations’ analysis was made.

Results

Maintenance:

• Estimated efficiency gain for site 1: 20-25% on FTEs → 1-2M€ (to be negotiated with sub-contractors)
• Estimated efficiency gain for site 2: 12-15% (internal) 15-17% (subcontractor) → 420-482K€

Reliability:

• Site 1: Estimated reduction of the technical production losses by 30-40% (product 1) and 40-55% (product 2)
• Site 2: Estimated reduction of the technical production losses by 35-47% (line 1) and 40-48% (line 2)

Our client is a multinational company in Automotive components, with a new business line for EV batteries cooling systems, taking a relevant market share.

Key Challenges

• Product line for EV market had a bottleneck in the press
• Long history of tentative improvement did not succeed due to lack of scientific

Approach

• The key to success was the ability to correlate product and process
  • Process was not in basic conditions and “habits” were considered as rules, leading to useless phases and high cycle time
  • Failure modes were not understood in depth and were partially
  • Product design can allow higher productivity once it
• Hands-on approach and dialogue between R&D, Quality, Maintenance and Production led to knowledge generation through proper design of experiments

Results

• 30% product line productivity increase through cycle time reduction
• 60% potential increase subject to customer approval of new product design (small changes) already tested

We can postpone investments for 2 years coping with the demand in the meanwhile

CEO

Our client is a global leader in Smart Energy Technology, specializing in intelligent inverter solutions for solar energy. With revenues of USD 1.96 billion and a workforce of over 4,100 employees, the company plays a pivotal role in advancing sustainable energy solutions worldwide.

Key Challenges

• Acquisition of an Italian Tier 1 (EV company) to enter the automotive industry
• Its suppliers provide core components/ modules: DCDC/OBC, E-motor, Inverter, PCBA, HV cables
• Improving the competence of 6 major suppliers (Tier 2&3) according to Tier 1 PPAP and VDA6.3 requirements for process management & submit Production Submission Warrant (PSW) on time
• Coordinate suppliers to ensure SOP start on schedule

Approach

• Regular review of the Production Part Approval Process (PPAP) separately with APAC supplier quality management and Tier 1 and 2 suppliers
• Coaching suppliers to close high/low risk investments and improve Quality competence (e.g., FMEA, Control plan, MSA, SPC, Change management)
• Coaching suppliers Shopfloor management (Performance mgmt., 5S, Visual mgmt. and Layer process audits(LPA) design and implementation)
• Support suppliers process improvement, current machine adjustment and new machine setup & validation to meet quality standards
• Client new machine investment evaluation & proposal for suppliers

Results

• Close high/low risk investments in PPAP checklist and submit PSW on schedule
• Improve Tier 2&3 suppliers’ quality competence and shopfloor management level
• Ensure new machines/ process setup & validation execution on schedule for Tier 2&3 suppliers

Our client is a global leader of new innovative energy technologies, committed to providing premier solutions and services for new energy applications worldwide.

Key Challenges

• No previous structure layout design method
• 2 battery coating lines, 1 separator area and 8 assembly lines will be built in a new building
• Total productivity will reach 80 ppm
• OEE target is 75%
• Reduce costs & material transportation distance and optimize material flow
• Support lean production and future business expansion
• Accident-free goods inventory control

Approach

Steps to Develop Ideal Block Layout:

• Gather management expectations/evaluation criteria
• Define preconditions for developing ideal block layout
• Identify layout planning units
• Develop layout planning affinity chart
• Make relationship diagram for the Layout Planning Units
• Calculate space requirements and utilization rate
• Prepare block layout plan
• Develop block layout alternatives
• Conduct materials flow analysis
• Evaluate the block layout alternatives and select the favorite one

Results

• Achieved 75% OEE
• Lean structure layout design methodology, logic and process
• The templates for every steps
• Production lines and areas layout according to lean and best practice principles

Our client is the battery recycling business unit of a specialty chemicals and materials company. The company employs over 11,000 people and operates 45 production sites worldwide, showcasing its extensive global presence and expertise in sustainable materials.

Key Challenges

Like all units in the organization, the site in China has its clear CO2 reduction targets, in particular through reducing steam consumption. The site had already implemented measures towards this target, but there was still some need to determine additional initiatives to reach this target. There was especially a need to combine Expansion plans and Energy Efficiency projects in 1 roadmap The company worked with EFESO and DB Energy to develop a roadmap for achieving the envisioned target.

Approach

• Plant energy walk-through of approximately one week to get a clear picture of the status quo and suitable measures
  • 4 Quick Wins (2 months realization time)
  • 6 attractive yet complex projects
  • 14 projects that went into backlog
  • 20 ideas were disregarded because they didn’t fit with the planned expansion
• Pinch analysis for the six complex projects
  • Designed solution and feasibility check of realization and impact
  • Investment estimation
• Review of the Energy management system
• Design of the optimal CAPEX roadmap for selected scenarios of volume growth
  • Investment roadmap with sequencing of projects
  • Overall Net Present Value calculation for scenario & approval

Results

• Financial payback:
  • For the full investment program: 4 years
  • For the energy efficiency investments: 1,7 years
• Roadmap to reduce the steam consumption, and the CO2 emissions by 76% in 2026

That's exactly what it's all about: achieving sustainability targets and creating financial value at the same time.

Sustainability Manager Rechargeable Battery Materials

Our client, managing a network of 18 SME suppliers, sought to improve operational efficiency and performance across their supply chain. Over a 6-week project, they engaged these suppliers in a targeted initiative. With 15 of the 18 suppliers completing the assignment, the project achieved an impressive 80% conversion rate, driving significant improvements in supplier operations. This case study highlights the challenges addressed, the solutions provided, and the positive results for both the client and their suppliers.

The business challenge

A prominent technical services provider for buildings, plants, and infrastructures faced a significant challenge with regards to their Scope 3 emission reduction ambitions. While large suppliers could provide sustainability data via platforms like Ecovadis or IntegrityNext, many small and medium-sized enterprise (SME) suppliers found these tools overwhelming and costly. The client planned to use the free "Eco-Cockpit" tool to standardize the inventory of Scope 1 and 2 emissions for these SME suppliers. However, initial validations revealed that these SMEs lacked the capacity to conduct thorough Scope 1 and 2 evaluations. The project aimed to establish a "hands-on support factory" as a pilot to assist 18 nominated SME suppliers in Germany, ensuring they could collect necessary data, use the Eco-Cockpit tool effectively, and set up their own GHG emission reduction roadmap.

The Approach

The project team implemented a pragmatic and hands-on approach by directly engaging with suppliers to explain the targets, relevance, and usage of the provided tools and templates. By leveraging the client's tools, the team ensured that data was accurately collected, in the correct format. To maintain progress and transparency, the team submitted weekly written reports and held bi-weekly alignment calls with the project sponsor. Key success factors encompassed providing guidance, demonstrating content expertise and managing change, particularly for suppliers who showed hesitance, therefore ensuring they adopted the client's goals. The establishment of a direct communication channel between the project team and the sponsor facilitated swift escalation and resolution for any supplier non-cooperation.

Results

• The project successfully demonstrated the effectiveness of the proposed approach. 15 of the client’s suppliers provided their own CO2 footprint data along with an initial roadmap for improvement. Collaboratively, the team and suppliers developed comprehensive CO2 emission reduction plans aligned with the client's sustainability goals.
• The project was delivered on time, meeting the six-week deadline following an expedited onboarding and kick-off process.
• This success enabled a full-scale rollout to engage additional suppliers, ensuring the client's scope 3 emission reduction ambitions remained on track.

We are at risk of not being able to take along our long tail of small suppliers to achieve our Scope 3 ambitions

client quote

The business challenge

A global leader in Oxo chemicals with operations in Europe, Americas, and Asia had committed to realize European Green Deal reduction goals, but was faced with the challenge to break down the sustainability targets over the years, define a roadmap to close the sustainability gap, while still realising ST business results. This in a challenging environment (COVID, energy crisis, Ukraine war, …).

Big steps had already been made on GHG (Scope 1, Scope 2), waste, energy reduction. The key challenge was to get the entire company on board to work on Scope 3 GHG reduction, taking regional differences into account.

We have committed to Europe’s GHG reduction targets. We defined a GHG reduction program and governance a year ago, but things are not really moving forward. I’m afraid we will not reach our targets… Can you help us to make things move forward?

client quote

The Approach

We engaged senior management through an End-to-End (E2E) ambition and action workshop, aimed at building a deep understanding of Scope 3 decarbonization. This workshop helped each department recognize its role in the process and concluded with personal commitments from each top manager, ensuring full alignment across leadership.

To mobilize the management team and experts, we co-created a sustainable chemicals progression roadmap. This was done through transversal working streams, each led by a member of senior management, fostering collaboration and accountability across the organization.

In parallel, we established a separate innovation stream to focus on generating breakthrough ideas to help the company reach its 2050 sustainability targets. This innovation stream allowed for forward-thinking and ambitious approaches to long-term decarbonization goals.

Additionally, we set up a drumbeat and integrated governance structure (PMO) to implement the roadmap in manageable progression cycles. These cycles were designed to match the organization’s capacity for change, embedding the new way of working into company rituals, such as budget planning, project approvals, and performance dashboards.

Finally, we involved various organizational layers in implementing the initiatives, ensuring that the changes were seamlessly integrated into the business and embraced at all levels.

Results

• The project successfully demonstrated the effectiveness of the proposed approach. A roadmap of initiatives to reach the Climate 2030 targets was defined. The project was delivered on time, engaging all countries and organizational layers in the approach.
• In 4 months, we achieved alignment on the targets and the roadmap to reach them

Client quote on the result:

“This program is the result of a process started years ago, bundling all our activities under one single roof. It represents both a very structured approach and a clear roadmap towards our goal of climate neutrality.”

Christoph Balzarek, EVP Corporate Development at OQ Chemicals)

Our client is a global leader in food packaging, operating across 116 locations in 37 countries. Specializing in sectors such as Flexible, Food, and Fiber packaging, the company has a strong commitment to sustainability and operational excellence. In 2023, the client reported net sales of EUR 4.2 billion. Despite having an established Operational Excellence (OpEx) program in place across most of its plants, the company needed to further optimize its processes to reduce material waste and lower its carbon footprint.

Key Challenges

Market downturn forced the need to speed up material waste reduction Significantly reduce waste, productivity losses and conversion costs OpEx journey started and capability build needed to continue Become the first choice in sustainable food packaging

Approach

The client already had an OpEx program started in most of their plants when the market downturn hit. To quickly ensure quick results on bottom line a program was launched based on the OpEx principles but with tighter focus on material waste reduction.

A common loss analysis approach supported by a standard playbook was implemented to facilitate best practice sharing and horizontal expansion of best working methods Remote virtual delivery coaching technologies were used combined with on-site coaching from local consultants in each country.

Focussed follow up and reporting governance drove the success. More hands-on local coaches were utilised to drive the outcomes.

Results

• 88 improvement projects with an annual potential of 5,3 MEUR addressing waste reduction
• Capability build: 88 trained team coaches, 350 persons trained as loss eradication team members
• The waste reduction equals 4,5 million CO2 equivalents

 

Business Challenge

The global and local support organizations, including areas like Engineering, R&D, Technology, Projects, and Digital support, were re-designed to streamline processes and improve efficiency. This re-design aimed at achieving an overall reduction in fixed costs by lowering the total headcount in supporting functions, ensuring a leaner, more cost-effective structure. Additionally, the organizational set-up was enhanced to foster the development of capabilities and expertise, ensuring that resources were readily available for both the current and future needs of the Sites.

Approach

• Assessment of current organization & engagement with key stakeholders
• Agreed design principles & top-down targets for the To Be organization aligned with client’s Strategy and business imperatives
• Conducted in-depth activity analysis & rationalization
• With top leadership developed the overall high level org design. Followed by detailed/blueprint co-design with management.
• Local gap analysis (against blueprint) and roadmap development (incl people selection process).
• Developed overall roadmap & implementation/communication plan. Facilitation of implementation roll-out.

Results

• Reduced the overall headcount with -10%
• Macro & micro design of all functions (incl. Blueprint org charts & job descriptions)
• Implementation Roadmap (including Change management, training & communication)
• Successful launch of new organizational structure in all regions

Business Challenge

The average CapEx investment volume exceeded €500 million annually. Market conditions and regional CapEx focus shifted, leading to a greater need for securing closer proximity between the engineering and business sides. Additionally, there was a necessity to streamline processes and increase agility to better respond to the changing demands of the business.

Approach

• Initial assessment and broad company-wide engagement of stakeholders and identification of main pain points to be addressed
• Development of a comprehensive improvement program with 12 strategic initiatives to address identified gaps
• Delivery of a transformation program
• Focus of external support on re-organization of the global engineering function, process-redesign for CapEx gate process (incl. implementation of fast-track version), change of policies and optimization of resource allocation.
• Support of transformation with change process – incl. communication strategy at main events, train-the-trainer for partnership workshops, etc.

Results

• Installed streamlined & business-centric new organization structure (incl. functions like Business Partner & Engineering Excellence function)
• Optimized processes & ways of working, including international collaboration
• Improved business collaboration & reduced escalation through aligned “rules of engagement”

Business Challenge

A new logistics and production building was constructed for an OEM car manufacturer. Various technologies were deployed during the project, including civil engineering and building construction, as well as water supply and sewage systems. Heating, ventilation, and air conditioning (HVAC) systems were also installed, alongside electrical installations and fire protection measures. Additionally, road infrastructure and parking spaces were developed, and landscaping was completed to enhance the surrounding area.

The success factors in the project included a comprehensive cost structure and potential analysis, along with a detailed examination of cost drivers. An intense and in-depth workshop was also conducted with the supplier to address key areas. Collaboration among the involved parties—Purchasing, Facility Management, and Production Engineering—was crucial in driving the project forward and ensuring its overall success.

Approach

• Lever details:
  • In-depth estimating of material costs and man-hours for each task based on best practice hourly rates as well as standard lumpsum unit costs
• CE Invest assessment methods applied:
  • Rough costing BPB calculation based on bill of quantities
  • Cost workshops with suppliers and negotiation support

Results

• 22% cost reduction achieved
• Negotiated value determined after reduction
• Delta (difference) observed between the negotiated value and another reference
• ICO price indication provided for comparison

Business Challenge

The business challenge for the client involved building a new reaction technology while addressing significant cost concerns.

Approach

• Conducted in-depth analysis of technical and commercial cost drivers
• Estimated manufacturing, assembly, installation, and commissioning costs
• Held intense workshops with suppliers and engineering teams
• Facilitated a seamless collaboration among the involved parties: purchasing, process engineering, cost engineering

Results

An impressive 18% reduction in CAPEX for the project.

Business Challenge

The client faced the challenge of optimizing an electroplating line for safety belt buckles, aiming to enhance efficiency and product quality while ensuring sustainability and adherence to strict industry safety standards. Balancing these objectives required innovative solutions to streamline production processes without compromising on regulatory compliance or performance.

Approach

• Analyzed exhaust ventilation systems, filters, and chrome treatment processes
• Collaborated closely with purchasing, manufacturing engineering, and production teams
• Applied our detailed calculation and bottom-up costing methodologies

Results

This comprehensive approach led to a 16% decrease in CAPEX for the client.

Our client is a manufacturer of luxury vehicles and motorcycles, with 150B€ turnover and 150K employees.

Business Challenge

Our client wanted to improve the CAPEX spend for their facilities and production plants beyond already known procedures and methods.

The Cost Engineering and Purchase organization where not capable to meet the requirements Support in operative CAPEX reduction and establishing a sustainable CE-Invest organization was requested.

Approach

EFESO supported in:

• Bringing in our pertinent industry expertise in buildings, technical building services, material handling, machinery & equipment
• Analyzing and optimizing the work breakdown E2E based on specifications and supplier quotes with our tools and methods
• Applying our capabilities in technical cost analysis for singe invest items, production/assembly lines and whole factory sites
• Training out client staff and supported in implementation of CE-Invest

Main Results

• We supported 60 invest projects and reduced CAPEX spend by >22%
• We supported invest projects for Buildings, Technical Building Services, Materials Handling, Machinery & Equipment
• We supported in building up the CE-Invest organization, processes and tools

Our client is a global ingredients’ producer in food, biomedical & biochemical markets, active in 60 countries. The client has an annual CAPEX budget of 200 M Euro.

Business Challenge

• By high demand for its products our client executes a challenging growth strategy.
• In support of this strategy, the organization runs a large Capex & Innovations portfolio. There is a recent trend of increased inaccuracies in the early FEL stages on required capital spend and an overshooting of technical & capacity requirements related to projected business needs.
• The clients’ ExCo wanted to control the CAPEX spend and asked EFESO to improve the portfolio management system.

Approach

EFESO supported in:

• Developing a clear & simple governance structure
  • Effective RACI on all levels (plant/business unit/Exco)
  • Transparent, multidisciplinary & effective decision-making processes
  • Integrated with other governance structures
• Effective application of standard processes and tools
  • Front-end loaded Stage-gate process
  • Effective tools such as risk vs. value matrix, Gain & Cost curve, etc.
  • Comprehensive reporting and analytics
  • Supporting stakeholders at all levels
• Continuous improvement
  • Regular review of standard processes and tools
  • (Data) analytics to identify areas of improvement

Main Results

Delivered ready-to-implement recommendations for:

• Simplified and effective governance structure
• Transparent CAPEX selection & prioritizing system
• Centralized Portfolio Management
• CAPEX portfolio dashboard and review process
• Systematic and transparent cost indications & estimations

Our client is a Business unit of a large automotive supplier that designs, manufactures and supplies wind turbine gearboxes.

Business Challenge

• Rising & volatile raw material and energy prices due to war in Ukraine
• Interrupted supply chains caused by pandemic situation
• Rising inflation due to shortages in components & fossile fuels
• Limited supplier-base due to the one of a kind nature of the equipment
• Holistic procurement approach needed to reduce CAPEX and OPEX

Approach

Our holistic approach to CAPEX sourcing makes sure, that:

• Commercial risks are reduced to a minimum while maintaining opportunities
• Colume and variety flexibility can be achieved with the lowest cost
• CapEx, OpEX & CO2e Footprint are reduced to a minimum

Main Results

• CAPEX reduced by 19%
• Budget target achieved
• Consumption of power & water reduced by 12% over lifetime

A leading global automotive supplier, ranked in the top five worldwide, generating approximately €40 billion in sales across multiple business lines, operating around 150 plants in major industrial areas.

Business Challenge

• Achieving climate neutrality by 2040 within the ESG framework
• Developing the first Corporate Carbon Footprint
• Rolling out the business area strategy to meet climate targets

Approach

• Development of a commitment framework to remove all open questions and to receive a binding target sign-off per business area
• Tailored support to business areas, functional setup and ideation process
• Matching of top-down Corporate Carbon Footprint calculation with bottom-up approach
• Analysis of already detected levers & identification of new levers by ideation of production processes (scope 1 & 2) and sourcing (scope 3.1U)
• Tracking logic for levers and progressive internal and external reporting
• Integration of customized lever analysis, ideation process and enabling tools into strategic planning

Main Results

• Setup and roll-out of a global climate neutrality program to reach climate neutrality targets

Our client is a confectionery manufacturer strengthening its presence in the competitive European market. The company operates multiple factories with progressive IT and OT development approaches.

Business Challenge

Our client aimed to build upon their existing Operational Excellence (OPEX) successes to propel their digital transformation. They encountered the challenge of fostering a closer integration between IT and production to cultivate a shared comprehension of both challenges and solutions. To enhance future competitiveness, the company wanted to optimize its production system by implementing digital tools, all while ensuring no disruption to daily operations.

The central objectives were to:

• Promote cultural change, making digitalization an opportunity for the workforce.
• Foster cooperation between IT and production departments.
• Ensure future orientation, allowing the production system to integrate relevant digitalization developments.

Approach

• Use Case-Oriented Methodology: ROI EFESO adopted a use case-oriented approach to identify and implement digital solutions that addressed specific operational challenges in the confectionery manufacturer's facilities.
• Selection of Best-Practice Examples: Leveraging best-practice examples from the food industry and other sectors, ROI EFESO tailored digitalization strategies to the client's unique operational context, ensuring practicality and effectiveness.
• Integration of Digital Tools: They integrated digital tools across three focus areas: improving factory processes, enhancing employee efficiency, and establishing transparency in production system performance.
• Alignment with Industry Standards: Utilizing the "Industry 4.0 pyramid" as a reference model, ROI EFESO ensured that all digitalization initiatives aligned with global industry standards for connectivity, information flow, and predictive capabilities.

Key Success Factors

• A common understanding of the initial situation and requirements; in addition to the IT and production perspective, employees from quality management were also involved.
• The targeted improvement of the OpEx elements and the elimination of losses, for example in the use of additives or the production of base materials.
• A clear elaboration and communication of the "core" of digitalization, in particular through the creation of use cases and their economic benefits.
• Empowering employees to continuously develop the production system. This relates to both the content of the training measures and the training tools used.
• The use of new technologies enhanced, not hinder, daily production. In the project, we promoted solutions that increased the maturity level of digitalization in all areas of activity.

Main Results

Our close collaboration ensured that the digitalization of the shop floor did not slow down the day-to-day business in production. Instead, it accelerated it and transferred it to connected operations fields. As a result, the company now leverages its production system as a catalyst to drive forward the digitalization successes already achieved. The combination of Operational Excellence / Lean and Industry 4.0 elements continues to provide the guiding framework.

• Achieved improvements in OPEX routines through digital tools, enhancing manufacturing and production system performance transparency.
• Implemented digitalization initiatives across 10 operational areas, resulting in significant advancements in factory processes, employee efficiency, and production system transparency.
• Enhanced shift handover effectiveness and root cause analysis with a digital logbook, reduced maintenance lead times through smartwatch documentation, and improved employee training efficiency with web-based modules contributing to overall productivity gains
• A cultural shift within the workforce, encouraging employees to view digitalization as an opportunity to enhance daily operations rather than as an imposition.

Our client is a large international snacks and confectionery business with a global footprint of more than 120 factories and turnover of $30 billion. It has significantly reduced the cost of operations year-on-year, but this trend is slowing down as the ‘easy to find’ things have been done. It faces the digital paradox – today the employees are more digital at home than they are at work; this is a barrier to productivity and employee satisfaction.

Business Challenge

The client has recognized that Operational Excellence (OpEx) efforts in the plants have plateaued due to poor data quality. People can see opportunities for improvement but cannot capture them manually due to scale of the equipment and required granularity. Some plants have invested in digital data collection systems, but these have not given an effective return in KPI results and productivity improvements.

Through these two influences the client has realized the need for a dramatic improvement in data quality, granularity and visibility. Furthermore they understand that any such effort must be supported by a robust program to ensure adoption.

Approach

EFESO’s unique blend of expertise in OpEx, Human Dynamics and Digital has provided us with the insights needed to drive adoption of the new data visibility applications, alongside achieving business results.

We drive adoption by making a very clear connection between business targets, OpEx approach, visibility of losses through data and the daily activities of the operators, shop floor leaders and business leaders. In practice, this involves driving measurable improvements in the application of OpEx on the shop floor, bringing to life the connection between data, loss eradication activities, the Performance Control System and people’s behaviors.

Variations in OpEx and Digital Maturity are managed within the program through customized support. The full digitalization of the OpEx approach is underway with adaptations to support digital work methods. This process is supported through strong cooperation between EFESO and Solvace to drive the adoption of the client’s Connected Worker platform.

Main Results

• An initial investment of $15 million is planned for the development of shop floor data visibility applications and line sensorization/connectivity. This investment will be recovered within 18 months through cost reductions resulting from increased visibility of losses. The aim of this investment is to build the applications and implement them in 4 pilot sites.
• Over a period of 6 months, the Line OEE at a key site has improved by an average of 25 percentage points
• There has been a strong adoption of the digital tools by both operators and process leaders

Our client is a prominent dairy products manufacturer with an annual turnover of €5.7 billion and a workforce of 27,500 employees.

Business Challenge

• Energy costs constitute a significant portion of manufacturing expenses, exacerbated by rising energy prices
• Complex factory set-up with several production lines, a power plant and a sewage treatment facility
• Obvious low-cost improvements had already been addressed
• Lack of expertise in carrying out reliable cost-benefit analysis for energy efficiency improvement projects

Approach

• Conducted a two-day on-site energy walkthrough with comprehensive preparation and follow-up.
• Identified and discussed potential measures during the on-site walkthrough.
• Established a reliable cost-benefit analysis using actual customer data and consultant expertise.
• Ensured effective and transparent project management on both client and consultant sides.
• Delivered required data on time, thanks to thorough preparation by consultants.
• Engaged key client experts for discussions on the customer side

Main Results

• Identified potential savings of up to €1.8 million through 30 energy improvement measures.
• Highlighted the four most critical non-technical levers for sustainable energy cost improvement:
  • Energy Strategy
  • Operational Excellence
  • Digitalization
  • Human Dynamics

The client is a leading provider of engineered foams with a global workforce of 3,000 employees, generating over €800 million in turnover, and operating 27 manufacturing plants across 19 countries.

Business Challenge

The business challenge involves integrating digitalization into the WCOM™ program to avoid the creation of a parallel organization. This includes identifying real value added through digitalization within operations and within the WCOM™ program itself.

Additionally, the updated WCOM™ program must consider the unique needs of individual plants rather than adopting a "one size fits all" standard. Finally, the challenge includes defining a system transition concept that does not impede the progress of the WCOM™ journey.

Approach

EFESO supported in:

• Use Case identification per Pillar. It is essential to identify the right value adding use cases for every pillar to boost the overall performance.
• Industry 4.0 pyramid & WCOM™. One of the key success factors was combining the industry 4.0 pyramid with the evaluation guide of the WCOM™ program.
• Close collaboration between Operations & IT. Operations & IT need to work closer together to streamline prerequisites and pillar target pictures to combine forces.

Main Results

• 10% OEE through higher transparency & use of digital assistance
• -5-10% losses through automated Q-data processing and advanced analytics powered evaluations
• Reduction of manual efforts by integrating digital tools & digitally triggered automation solutions
• Shorter employee ramp up phases through an AI powered learning management system

Our client is a world leader in excipients development and manufacturing, primarily utilizing lactose-based products. The company operates in more than 100 countries worldwide.

Business Challenge

A comprehensive 360-degree view of digital technologies reveals their impact on various business aspects, including efficiency (inventory management, Overall Equipment Effectiveness, monitoring, and alarm management), product consistency (grain size and specification attributes), and market positioning (lead time reduction and customer integration).

Approach

EFESO supported in:

• Digital use cases to address pain points and realize automation potentials.
• Align the digital roadmap with the business strategy.
• Elaborate a target IT enterprise architecture as a full Industry 4.0 solution stack.
• Evaluate the business case.
• Create a transformation roadmap.

Main Results

• Aligned the digital use cases portfolio with the business strategy.
• Established a digital architecture as a full Industry 4.0 solution scenario.
• Business case with a return on investment in less than 2 years.

Our client is leading multinational pharmaceutical company headquartered in Germany, operating on a global scale with 146 affiliates and a workforce of over 47,000 employees.

Business Challenge

The customer faced the challenge of implementing Lean and Operational Excellence best practices across more than 40 labs and QA functions. This involved optimizing operational efficiency to achieve short and consistent lead-time performance, thereby improving batch release and R&D project lead-times and consistency. Additionally, it aimed to enhance the sites' ability to make and meet accurate commitment dates for clients.

Approach

EFESO supported in:

• Design and Implementation of Levelling, Flow and Standard Work solutions for each Lab & QA group
• Development of Capacity and Demand planning tools to enable accurate commitment dates for commercial project work
• Implementation of effective Short Interval Control & Performance Management processes in each group
• Design and implementation of digital lab & group management tools

Main Results

• Achieved 10-36% productivity and capacity increases across more than 40 labs and QA groups.
• Realized 30-70% increases in the percentage of routine batches released on-time and adherence to commitment dates for commercial project work.
• Achieved 10-75% reductions in routine testing lead-times.
• The site also took on global raw material testing workloads with no increase in overall resourcing.

Our client is a a manufacturer of medical products with more than €250 million in sales and 2,000 employees.

Business Challenge

The business challenge involves aligning the business strategy and target processes with an optimized SAP-based IT architecture, integrating APS and ERP systems. This requires overcoming a scattered IT tools landscape, heterogeneous processes, and weak Overall Equipment Effectiveness (OEE). The company must implement an advanced planning and scheduling system on top of SAP while migrating from a heavily modified current SAP version to SAP S4/HANA. Additionally, managing multilevel production wheels in planning and scheduling adds to the complexity of this transformation.

Approach

EFESO has performed the following activities:

• Conducted a fit/gap analysis and optimized business & IT blueprint.
• Running a diagnostic of change readiness (people & organization)
• Defined processes in alignment with business strategy.
• Delivered on-site training and coaching in new processes.

Main Results

• Developed a global process and IT blueprint.
• Harmonized planning and scheduling approaches for capacity and materials.
• Integration model for APS platform with new SAP S4/HANA.
• People adoption (IT solutions implemented in the shopfloor).
• Reflection on external and internal drivers to business strategy.
• Identification implications for people, operations, processes, and IT.

Our client is a leading international tobacco company with around 73.500 employees, USD 30 b net revenues and products are sold in more than 180 markets.

Business Challenge

To replace cigarettes with reduced risk products, the project aimed at eliminating redundancies, identifying opportunities for simplification, developing solutions to improve equipment user-friendliness, and achieving a 30% cost optimization.

The key challenges were:

• Product cost reduction for the next generation cigarette packer
• Product evolution with 20% new parts and 80% carry-over components (mainly electric/electronic components)
• Target cost vs actual cost estimate results in a gap of 23%
• High level benchmark requested to identify cost drivers compared to benchmark
• Machine Design freeze

Approach

EFESO supported in:

• Enforcement of Design-to-Value methodology, to reduce the gap between customer needs and OEM approach, establishing a new level of cooperation, especially in the early project phase
• The Design-to-Value methodology was deployed with a 360° approach that considers the end-to-end OEM’s Supply Chain
  • technical and economic baseline definition
  • opportunities generation by scouting new opportunities assessing implementation risk, capex savings, implementation timing, feasibility etc.
  • build-up of the to-be DTV Cost model to properly qualify each opportunity by cost item and estimate the cost saving based on the Volume deployment
  • implementation plan of the identified opportunities

Main Results

• 26% Average CapEx saving achieved by considering opportunities feasibility, implementation plan and machine configuration per country world-wide
• 30% extra cost reduction was earned for packing, installation and commissioning.
• The client and the OEM established a new way of working, based on a more structured relationship.
• 25% CapEx savings achieved with ~ 110 approved ideas achieved by considering opportunities feasibility, implementation plan and machine configuration per country world-wide.
• Industry benchmarking resulting in practical direction on the competitiveness of technical solutions.
  • 30% extra cost reduction was earned for packing, installation and commissioning.
  • The client and the OEM established a new way of working, based on a more structured relationship.
• Cost structure analysis of the complete system.

Our client is a global leader in oxo chemicals with operations in Europe, Americas and Asia.

Business Challenge

To become a climate-neutral company by 2050 or even earlier, as stated by CEO Borgmeier, the company will boost its sustainability strategy by defining and implementing a very structured and clear roadmap to reduce its GHG emissions over the coming years.

Approach

EFESO supported in:

• Interviews with leadership, experts, plant engineers and operators to understand their attitude towards the GHG reduction program
• Analyze why the old approach hasn’t delivered the expected results
• Facilitate:
• an inspiration workshop with a competitor’s approach
• a process awareness session with senior management on the Value Chain from Scope 1, 2 and 3 emissions
• Ambition and action workshop about senior management’s ambitions to the GHG reduction program
• Co-create “Sustainable Chemicals” progression roadmap
• Set-up a pragmatic governance, supported by an adapted business case and project allocation process
• Integrate GHG reduction program into the overall Project Management Office
• Integrate business plans outcomes of the different departments
• Support Breakthrough and Innovation workstream to set-up and adapted innovation process
• Closely work with the sustainability manager to make ‘reduce’ contribute to the overall sustainability strategy

Main Results

• Structured approach & clear roadmap with defined and intermediate targets
• Several initiatives launched & implemented starting from beginning of 2022
• The US plant is catching up with the German plant after initial cynicism

Our client is a French-English rail transportation service operator for passengers and trucks, with a global turnover of 700M€.

Business Challenge

The Group's strategy focuses on core activities and operational excellence to secure service reliability, increase turnover, and finance strategic growth in freight transportation. However, a 20% turnover decrease due to economic slowdown and increasing breakdowns on rolling stock equipment, coupled with fierce competition in a stagnant market, necessitated a rapid increase in the reliability and competitiveness of the transportation service. To secure trains’ reliability and availability, a cost reduction target of 20% had to be quickly achieved. To meet the CEO’s expectations, a secured optimization plan had to be built within 3 to 4 months.

Approach

EFESO supported in:

• The optimization phase was mobilized in 4 steps with supporting cross functional workshops throughout the process:
• Needs and functional analysis
• Search for alternatives
• Compare and select solutions considering risk, technical performance, costs and lead time, compare the solutions and select the best design
• Improve the business process of cross functional project work towards ambitious target costs

Main Results

• 39% CAPEX costs reduction (representing 25% of annual operating margin)
• Optimized investment renewal plan
• Improved Business Process

Our client is an industrial carve-out to a private equity firm and a manufacturer of puree flakes with a turnover of €80M.

Business Challenge

The new shareholder, a company held by a private equity firm, expected an independent expertise to assess a new CAPEX project before the launch phase in a very short period. The business case had to be reviewed in a context of high price volatility and uncertainty regarding volume growth. There were strong expectations for the new CAPEX, specifically the implementation of a new production line to support volume growth, with a focus on meeting sustainability requirements and regulatory constraints.

Approach

EFESO supported in:

• Existing CAPEX quick assessment
• CAPEX project due diligence on seven main topics:
• Business plan
• CAPEX plan and capacity
• Technical specification
• Equipment procurement process
• Regulatory compliance
• Project management
• Legal
• We performed the project effectively based on:
• Site visit (100% of the existing production line)
• Interview with shareholders and stakeholders
• Methodology best practices
• Weekly meetings with project management team

Main Results

• Extended review of the CAPEX project
• Risk mitigation, based on a detailed project assessment
• Business plan review and update
• Technical detailed specifications update
• Legal assessment & recommendations
• Project structure definition & PMO toolkit
• Successful tender process

Our client, a global manufacturer specializing in chemical catalysts and the design of processing plant and equipment, boasts a revenue of EUR 850 million and a workforce exceeding 2,300 employees.

Business Challenge

Despite a long tradition of innovation, the client still worked with traditional stage-gate and project management processes.

The company faced a sudden spike in production costs, prompting them to reassess the total cost of ownership. This was further complicated by the fact that the engineering group was spread across two locations in Europe and Asia (with the Asian site recently opened and seeing high turnover) using distinct processes and incurring varying costs.

Additionally, the expense of altering existing machinery was prohibitive, largely due to space constraints and the high cost of raw materials, which constituted 80% of the total cost. With limited bandwidth for research and development, addressing these challenges posed additional hurdles.

Despite high customer demand, which restricted opportunities for line stoppages to implement design changes, the company remained committed to optimizing its operational efficiency.

In addition, engineering team was not aligned around knowledge and value creation and did not promote ownership and flexibility in decision making at the project and portfolio level.

Approach

Drawing on EFESO’s 7 1 Lean Product Development essentials, the cross-functional team focused on two pilot projects to demonstrate the following LPD principles:

• Match Throughput to Business Needs
• Portfolio Cadence & Flow
• Visual Management
• Reusable Knowledge

EFESO supported in creating a holistic Value Engineering with the following outcome:

• 67 Design Change Proposals challenging the current residual catalyst: 14 raw material related, and 53 process improvement related (27 for the carrier and 26 for the catalyst)
• 63 of them with spin-off possibilities, i.e. proposals applicable to other catalysts (with higher volumes compared to the one under study)
• 25 proposals to reduce energy consumption
• 31 proposals to increase production capacity
• 32 proposals with <6 month to implement; 15 within 12 month and 20 R&D proposals that require extensive testing and are >18 months to implement
• Open minded and pro-active cross functional team including R&D, production, purchasing, process engineer, chemistry specialist, product manager and sales

Main Results

• 25% to 30% reduction of energy (gas) consumption per ton
• 10% increase in project delivery capacity and time to market through optimized portfolios, visualized work and leveraged knowledge
• Resulting in $22.5 million increase in annual revenue

Our client is a global biotechnology company at the forefront of advancing therapies for a range of rare and devastating diseases.

Business Challenge

Our client’s contract manufactured supply chain had long E2E lead times of between 18-24 months and was holding significant volumes of inventory. Our client was in the early stages of a new product launch and were anticipating volumes to ramp up considerably in the near term. EFESO were asked to understand and resolve the performance shortfalls in the existing supply chain and ensure the future supply chain is designed to minimize lead time and inventory.

Key challenges navigated whilst delivering the project include:

• The need to coordinate a cross-functional project involving Quality, Manufacturing, and a Contract Development Manufacturing Organisation.
• The time availability of the project team whilst balancing their business-as-usual responsibilities in a hectic new product introduction environment.
• Willingness of the CDMO to collaborate on the biotech-initiated project and embrace recommendations from the project.

Approach

• People – Ensured the ‘why’ of the project and ‘what’s in it for me’ was clear to all parties through our Human Dynamics approach
• Talking with data –Recommendations made based on clear data analysis so taking the emotion out of performance gaps/opportunities
• Mapping key processes – Spent time with the client at an operational level to map and understand existing processes in detail so that tailored solutions can be developed
• Development of win : win solutions for all parties – The project was enabled by senior commitment to work collaboratively. We held cross functional workshops with an open and honest culture of sharing and problem solving

Main Results

• >60% reduction in Lead time identified in Batch Record Process
• >45% Inventory Reduction
• Mitigated $9m Risk of stock obsolescence

Our client is a Swiss pharmaceutical multinational with over 2,000 employees and a turnover of 1 billion CHF. Their products are distributed in over 90 countries worldwide, facilitated by 18 strategically located branches across Europe, Asia, and the US.

Business Challenge

The need to improve operations’ structure service level and competitiveness while keeping volumes and quality standards. Operations are not used to measuring themselves, do not have a structured system of KPIs and meetings and have a silo mentality. Over the past 40 years, the company registered an annual CAGR of 14%, without a real focus on costs but rather on expansion; key positions are occupied by hierarchical managers with a silo mentality

Approach

• Capture long-term corporate objectives
  • Understand impact on operational areas
  • Develop KPI and meetings system for alignment
• Assess consistency of operational objectives vs corporate objectives
  • Define KPI targets for expansion plan support
• Evaluate cost structure with finance department
• Assess operational performance for improvement and goal achievement
• Key success factors:
  • Define operations' north star
  • Develop client-involved solution, integrating theory and practice
  • Utilize diplomacy, negotiation, and change management

Main Results

• Implemented Performance Control System based on structured meetings that leverage business intelligence system to oversee aspects like production, HR, project management, quality
• €2-4M cost savings
• Lean mindset adopted in laboratories to enhance efficiency and productivity by reducing waste and cycle times

The client is a Multinational Life Sciences company, with operations in more than 80 countries with more than 100,000 employees, €47.6B sales and €7.1B investment in R&D. The project mentioned covered activities at two specific sites within the company's operations.

Business Challenge

• Cost and efficiency pressure due to decreasing margins
• Previous implementation of the production system not sustainable
• Unsteady production: high unplanned down-time, variance in change over, defects, etc.

Approach

• Implementation Approach
  • Tailored training concept with practical exercises for operative leaders and operators
  • Implementation support with daily presence on the shopfloor (we do  you do)
  • Ensuring methods usage through Process Confirmations & Daily Shopfloor Management
• Leadership Development
  • Set-up of new Line Leadership structure
  • Coaching to support leaders and to practice Servant Leadership culture on the shopfloor
• Pillar Organization

Implementation of local pillar teams as owners and ambassadors of pillar methods

Strategy deployment and alignment between site business targets and production system

Results

Coverage of Formulation and Packaging Lines:

• Successfully addressed 20 formulation and packaging lines, resulting in substantial savings exceeding €5 million.
• Stabilization of Operational Processes and Performance Improvement:
• Achieved stabilization of operational processes and notable improvements in performance KPIs.
• Transition to Servant Leadership Behavior:
• Facilitated a transition to servant leadership behavior, fostering true ownership and accountability on the shop floor.
• Integration of Pillar Teams:
• Effectively integrated pillar teams into the organization, driving and sustaining the production system.

Our client is a biotechnology company at the forefront of advanced therapies aimed at treating a wide range of devastating diseases.

Business Challenge

Challenges included limited visibility into future end-to-end supply chain planning, with planning activities predominantly conducted through manual processes using Excel. This involved managing a large volume of input data gathered from various sources such as emails, Excel reports, and verbal communications. Additionally, the supply planning process operated without digital support, leading to inefficiencies and reliance on high levels of manual effort to generate business intelligence reports essential for informed decision-making in planning.

Approach

1. Supply Planning Process Mapping

Conducted comprehensive process mapping of the supply planning process, identifying quick wins and addressing process gaps.

2. Development of Minimum Viable Product (MVP)

Developed a Minimum Viable Product (MVP) equipped with essential features for real-time planning, meticulously tailored to meet user needs.

3. Utilization as One-Source-of-Truth

Leveraged the tool as the One-Source-of-Truth for supply planning data, seamlessly integrated with the existing IT ecosystem.

Main Results

• High level End-to-End visibility of supply plan
• Generate SC planning charts automatically
• Support “what-if” scenarios and business intelligence reports creation
• Reduced today manual effort for supply planning by 90%
• Automatic identification of supply risks from visual alerts

Our client is a major multinational corporation in the pharmaceutical and medical devices industry, boasting a remarkable revenue of 35 billion euros and a workforce of over 100,000 employees. With a global presence and a diverse portfolio of products.

Business Challenge

Undertaking an Industry 4.0 potential assessment to identify, pilot, and roll out projects aimed at making a significant contribution to achieving productivity improvement targets of 10% per year.

Approach

• Potential analysis and short list of I4.0 opportunities
  • Conducted 3-day site assessments focusing on material flow, quality, and maintenance.
  • Provided an overview of process execution, information flow, IT systems, and areas for improvement.
  • Collaboratively identified the most promising I4.0 initiatives, emphasizing smart material flow automation, predictive maintenance, and digital shop floor management.
• Business case calculation
  • Evaluation of investment costs, savings, complexity, technical feasibility, and implementation effort to prioritize initiatives.
• Implementation roadmap
  • Determination of a detailed roadmap to implement Industry 4.0 projects in 3 waves, including work packages, required resources and budget for first wave

Main Results

• 50 Smart Factory projects with a positive business case.
• Payback in average less than 2 years
• Business case calculation with recommended project and prioritization.
• Determination of a detailed roadmap, including work packages, required resources and budget

Our client is a pharmaceutical company, boasting a global presence with more than 10 plants and operations spanning across the world. With a revenue of billions euros, they are a prominent player in the pharmaceutical industry. The project primarily focuses on Oral Solid Blister products.

Business Challenge

Navigating a complex project plan, our client embarked on assesment phase to four different plants within a span of four months. Faced with stringent deadlines, they had to ensure the project progressed smoothly amid the tight schedule.

Moreover, grappling with low data accuracy and availability hindered effective decision-making, exacerbated by resource constraints due to an under-dimensioned OpEx organization. To add to the complexity, the company had to manage an intense onboarding program to keep everyone aligned with the project objectives, further complicating the operational landscape.

Approach

Hands-on approach to carry out activities at two levels:

• Corporate: implementation of management system, design and support the creation of a new OpEx structure, definition of a standard calculation for production yields, creation of a system to monthly monitor unitary cost
  • Plant: assessment and deployment of strategic targets declined into six main topics (service level, production, cost, quality, yields, safety)
• Development of effective and reliable performance analysis of as-is and to set targets

Main Results

• 37% cumulative OTIF improvement in one year
• 10% cumulative volumes production in one year
• Decreased cumulative unitary conversion cost by 9% in year 1
• 1% cumulative yields in one year

Our client is a leading technical apparel company with a global turnover exceeding €300 million. Their operations include a spacious 20,000 square meter warehouse, employing a unique hybrid operating model that seamlessly integrates internal personnel with cooperative efforts.

Business Challenge

Our client aims to improve warehousing productivity and cost optimization across both internal and external (3PL) warehouse operations. Managing approximately 20,000-25,000 SKUs, including both current and past collections. These items are distributed among various storage locations, including 16,000 pallet positions, 550 drive-in locations, and 44,000 bin box slots integrated into a multi-shuttle automated system, alongside 6,000 carton slots dedicated to manual picking.

Approach

1. Process Mapping and KPI Definition:

Conducted a preliminary assessment of process mapping and define key performance indicators (KPIs) and their development.

2. Personnel Right-Sizing Method:

Introduced a 'productivity-volume' approach to optimize personnel allocation for key direct operations, including container inbound, picking, and outbound.

3. Improvement Activities:

Implemented improvement activities across internal and external warehouses’ operations, focusing on:

• Picking with double capacity of manual picking, routing optimization and stock allocation
• Flexible storage system dedicated to single-piece management of low runners (C class, 7-9.000 SKUs)
• Optimal allocation between internal and external 3PL workload and inbound (containers’ unloading) and outbound (picking)
• Packaging size review to improve box fulfilment and minimize transportation costs

Results

Cost Savings:

Achieved €1 million in annual savings, representing a reduction of 22% in direct personnel costs and 37% in external warehousing expenses, all accomplished within a 4-month project timeframe.

Performance Dashboard:

Developed a comprehensive performance dashboard to enable real-time monitoring of productivity and workload across various warehouse areas, including inbound, forklift operations, picking, and outbound processes.

Warehouse Optimization Procedures:

Reviewed warehouse optimization procedures for replenishment and stock reallocation activities to enhance operational efficiency.

Our client is a leading toy manufacturer with sales of €1 billion, with clients in 25 countries, offering a diverse portfolio comprising approximately 10,000 SKUs. The majority of their products are manufactured in factories located in Asia and are distributed through a network of 4 ports in the EU and 5 distribution centers.

Business Challenge

Delays were encountered in a project aimed at centralizing distribution operations in Eastern Europe, which necessitated the extension of existing third-party logistics (3PL) contracts. The project's aggressive growth agenda was misaligned with the challenges of long lead times, high inventory levels, low margins, and elevated operational risks. An analysis was conducted on the configuration of assets, flows, and policies to recommend the most suitable setup. This analysis took into account the impacts of centralized operations on existing 3PLs as well as potential new ones. Additionally, the expected expansion in e-commerce was considered alongside the continued attention to brick-and-mortar sales.

Approach

• Delivered an initial Centre of Gravity study
• Completed Assessment of Business Needs and Supply Network Requirements
• Business Needs translated into Supply Network Requirements
• As-is model (Baseline) built and validated
• Improved base case developed, and quick wins identified
• Extended case developed to reflect long term growth
• Evaluated 11 main scenarios and additional what-if and sensitivity analysis to identify the optimum global 10-years Supply Chain footprint

Results

• Designed a decentralization strategy which will lead to €11.4 million in savings
• Achieved improved service reliability with shorter lead times.
• Delivered expected business needs, including optimizing channels and customer mix for e-commerce
• Revised 3PL strategy, implementing actionable contracts, SLAs, and fostering collaborative and strategic relationships

Our client is a leading global apparel retailer, generating €1 billion in revenue and employing over 7,000 people. They operate in the clothing and textile industry.

Business Challenge

The customer was facing a challenge to transform the industrial property chain into a key competitive advantage to enable client responsiveness to market demands and reduce time-to-market and to optimize costs while enhancing profit margins.

Approach

The project included the following steps:

• Establish agile and lean organizations aligned with defined processes
• Foster exceptional performance in internal departments and external laboratories
• Streamline Product Complexity and Simplify Industrialization process to reduce time-to-market
• Ensure superior service levels and reduce production lead times

Results

• Delivered €15.5M Savings (€6.5M from operational expenses and €8.5M from right sizing), resulting in an 8% reduction in industrial costs
• Improved service level by 10% (from 78% to 88%) within one week of requested delivery date
• Quality control measures reduced order rejections from 20% to 8%
• Streamlined collection by reducing fabric types by 30% and color varieties by 60%

The customer is a leading UK high street value clothing retailer, employing more than 70,000 people in 14 countries.

Business Challenge

• Improve supply chain capability to handle the business expansion plan
• Eradicate delays at seaport in the supply chain
• Ameliorate DC capacity issues during peak period
• Improve flow process for store expansion program
• Reduce third party logistics operational cost for current DC and transport to store

Approach

The project included the following steps:

• Strategic review and analysis of End-to-End supply chain costs, flows and capacities
• Range and category analysis assessment of store service priorities
• Developed options aligned to business projections
• Identify a business case, costed solution, savings equivalent to 1.5% of sales

Results

• Phased 5-year supply chain migration plan with NPV of € 350m
• € 3,5m operational cost savings identified
• 10-12 days potential LT reduction on fast fashion garments
• Developed a prioritized operational and store improvement program

The customer operates as a global distributor, representing 11 brands sourced from 14 vendors in luxury consumer goods. Their strengths rely in jewelry, watches, and writing instruments. To efficiently manage their operations, the client has strategically divided Europe into 6 distinct distribution regions.

Business Challenge

The warehouse in Amsterdam distributes about 21.000 SKU’s to 2 major platforms, 24 boutiques and 1911 wholesalers. A large part of the EU warehousing function is moved towards Amsterdam; in the coming years the volume will double and the company started to apply Lean Management in its warehouse. The objective of the lean analysis is to improve, secure and guarantee lead time and service performances and cost reduction/-control.

Approach

The project included the following steps:

• The current state of Value Stream Map of the spare parts flow for watches is set up by walking the flow, making videos and interviewing the involved employees
• Improvement teams are composed working on improvements in the warehouse and material handling
• A performance control system is developed with clear KPIs and loss ownership

Results

• By implementing a flow-oriented process, we achieved a reduction of nearly 16% in lead times. This strategic approach not only eliminated dead stock but also significantly minimized overall inventory levels, resulting in approximately €250K in savings (equivalent to 8% of total inventory value).
• By executing the 5S methodology and standardization, we achieved a 17% reduction in average search and picking time
• The implementation of the Performance Control System (PCS) has led to enhanced structure, clarified roles and responsibilities, and notable performance improvements

The customer is an Italian jewelry manufacturer with a global presence across 30 countries.

Business Challenge

The client has a Supply Chain and Operations organization composed by several small suppliers which results in a high level of gold equivalent WIP inventory. In that context the client needed to identify solutions to reduce stock and effort in terms of manpower linked to overprocessing and rework.

Approach

The project included the following steps:

• Assessment of end-to-end supply chain through Value Stream Mapping with identification of waste and stock accumulation (internal and external)
• Identification of critical issues on demand, SL and production planning processes that generate rework
• Analysis of non-conformities with QA matrix
• Inventory Breakdown Analysis and problem solving

Results

• 39% reduction of warehouse coverage respect the average value of last year
• 30% reduction of lead time for main product families
• List of middle/long term improvement opportunities to reduce inventory
• Power BI dashboard to monitor main Supply Chain KPIs and performance

The customer is a US Central Distribution Center for lenses, serving a leading manufacturer of luxury eyewear. The center manages an extensive inventory of 100,000 SKUs and employs a dedicated workforce of 80 people.

Business Challenge

Optimizing Picking and Sorting Strategies for Rapid Automation Payback.

In addressing our client’s challenge, we focussed on defining the most effective picking policy and sorting parameters to achieve swift payback for automation. Our approach involved Dynamic Warehouse Simulation, where we rapidly simulated warehouse operations, considering forecasted volume. The key factors included:

• Area Segmentation: Analyzing different warehouse zones.
• Picking Modes: Evaluating various picking methods.
• Sorting Technology: Assessing sorting and packing options.
• Parameter Mix: Identifying optimal combinations.

Approach

The project included the following steps:

• Analyzing Order Cut-Off Time Consistency vs. Service Level: We examined a substantial data sample to assess how well order cut-off times align with service level requirements. This analysis focused on daily peak operations.
• Efficient Simulation Modeling for Pick and Pack Operations: In a remarkably short timeframe, we created a simulation model that accurately represents pick and pack operations. Our model considers both manual and technology-assisted operations.
• Strategic Stakeholder Discussions for Optimal Picking Policy: Engaging with key stakeholders, we explored various alternatives for the picking policy. Our goal: gain consensus on the best approach, ultimately minimizing payback time for automation.

Results

• Up to $ 1.2 M savings foreseen in 2 years (~$0.8 m in the 1st year)
• Reduction in pay back time
• Developed rules for order bundling to run the sorting technology starting from the picking approach
• Defined a simulation model to represent the picking sizing according to different pathways and different rule for bundling orders in the mission

Our Client is a leading global player in luxury fashion and leather goods.

Business Challenge

Following the construction of a new plant, the client needed to internalize specific activities related to material flow optimization and handling on assembly lines. To overcome this challenge, this was our approach:

Analyzed the current situation to understand the design and functioning of the current preparation area. The goal was to gain insights into the current processes and identify areas for improvement.

With this understanding, we then studied the ideal logic and sizing of the flow between the warehouse and the preparation department

Real-World Testing: Finally, we tested the chosen solution within the actual factory environment. The aim was to validate its effectiveness and fine-tune any adjustments needed for seamless operations.

Approach

The project included the following steps:

• Logistics
  • Developed a new Kanban logistics system for material handling and recall, by introducing standardized trolleys and boxes.
  • Introduced a system of trolleys of product components to be worked on with available materials in the "frozen period"
• Improved layout of the new plant – production area
  • Analyzed the current preparation area, evaluating various scenarios for department organization using specific tools such as spaghetti chart, from-to matrix, saturation machine
• KPI
  • Defined and introduced an indicator system related to Productivity, Quality, Safety
  • Indicator “totem” introduction (PCS System) on the assembly and preparation area

Results

• Stabilized, standardized material flow from warehouse to/vs depts
• Reduced stopped orders due to lack of material
• Improved new plant’s layout
• New macro layout of machines and tools in preparation and paint areas, optimizing operator movements and machines’ utilization rate
• 60% volumes
• Cost benefit ratio: 1/3

 

The company is a leading UK and International multi-channel Sports Fashion retailer expanding rapidly in the EU and beyond within the next 5 years.

Business Challenge

• Business aligned strategy development unlocking Supply Chain improvement potential
• Decoupling of UK and EU networks necessary post-Brexit
  • avoid Tax and Duty penalties
  • reduce logistics costs
  • long lead-times versus the competition
• Legacy supply chain cannot support the planned growth, particularly for online

Approach

The project included the following steps:

• Strategic review and analysis of end to end supply chain costs, flows and capacities
• Co-developed a series of options to support business projections
• Determined the optimum logistics network to service retail stores and online business in 5 years
• Developed a pragmatic implementation plan
• Developed the business case with time-phased cashflows and investment appraisal

Results

• Tax and Duty mitigation equivalent to 6.5% of revenues in scope
• Cost to serve reduction equivalent to 2% of sales versus legacy logistics network
• Retail Next Day service up from 15% to >85%
• Online fulfilment in 2-3 days for almost all of the population, with over 30% Next Day
• Network of hubs and cross-dock locations to reduce transport and CO2 impacts

The company is one of the world leaders in cosmetics.

Business Challenge

• The company needs to promote World Class Manufacturing/TPM as a way of life across all the manufacturing sites, promoting the continuous improvement culture change focused on standardization across the plant.
• The objective is to bring efficiency improvements and help the company to compete in the challenging vulnerable demand environment.

Approach

Worked with the Operations Director to Implement Pilot phase in pilot factory to increase the OEE

• Depth loss intelligence analysis to identify the priority areas.
• Development and implementation of Daily Performance Control System (production and maintenance) across all departments.
• Deployed the pilot approach in all the factories of the Group (roll-out).

Results

• OEE increased from 55% to 70% in 2 years.
• Loss deployment identified in breakdown/short stops and quality problems with focus on packaging line.
• Implementation of Digital Daily Performance Meetings in Production and Maintenance with demonstration of increased team analytical skill abilities and integration of cultural cross-functional teamwork.

The client is a multinational smart manufacturing digital reality solutions company providing SW and HW for design and engineering, production and metrology in manufacturing.

Business Challenge

The main challenges where in low cross-selling ratios across entire customer base. There was a lack of understanding in customer spending patterns and untapped growth potential and a lack of understanding of customer’s business drivers (i.e. “pains and gains”). The company. The ability to create strong needs-oriented value argumentation and sales collateral was not matured.

EFESO was asked to create a scalable cross-selling concept for sales and marketing to explore growth pockets. the concept had to be tested and ready for expansion.

Approach

A Growth Exploration concept was developed and piloted containing:

• Definition of the growth opportunity
• Development of a customer value creation approach
• Selection and on-boarding of pilot customers and accounts
• Testing and adjusting the concept with customers
• Documentation of results
• Creation of a plan of next phase for expansion to additional markets

 

Results

As a result of our proven “Boost and Build” approach, we have successfully delivered:

• Customer profiles – Stakeholder personas for better understanding of customer agenda
• Growth pocket model - Logical structure of growth areas for increased focus
• Customer value creation – Clear definition (and quantification) of value creation in each growth area
• Growth opportunity estimate –Addressable growth potential to increase sales ambition
• Growth “Sales Play book” – Instructions for sales force to apply Growth Exploration

The target company is a leading multi-brand Italian kitchen company operating in both national and international markets, and was facing profit erosion due to a fall in demand. This positioned the company in a financially distressed situation.

The Italian turnaround fund was looking for a partner to identify ways to:

• Increase revenues and improve market position in the German, French and Italian retail markets, as well as in the project manufacturing market
• Improve EBITDA through increased efficiency, effectiveness, and cash release.

Our approach

After a three-week assessment, we started a turnaround program focusing on:

• Outsourcing processes, and a new organization
• Operational process review and an associated productivity increase both in the Italian and the French plants
• Rationalization of products and stock policies
• Time-to-market reduction through a process re-design and configuration tool implementation
• The customer experience, and an associated and needs analysis
• Supply chain performance analysis, and the improvement of supply chain synchronization

Results

The program deployed helped improve EBITDA margin from less than 2% to 12% in less than two years.

EFESO Management Consultants was requested by a Private Equity fund to support the Post-Merger Integration of two of its portfolio companies in the pharmaceutical sector, with the objective of ensuring integration success, and delivering expected synergies within six months.

Our approach

The EFESO engagement team carried out the integration process in five countries by:

• Designing a lean Target Operating Model, focused on key activities to reach strategic objectives, and considering the current strengths of both merged companies
• Quickly ramping-up processes, systems and capabilities in Manufacturing and the Supply Chain
• Aligning and improving key business processes
• Rolling-out a change management plan through a participative approach to align the team around the merger
• Setting-up a Project Management Office (PMO) in order to mitigate risk, size the effort and keep everyone focused on the major integration activities of the action plan and the defined momentum.

Results

The Post-Merger Integration achieved results beyond the targeted financial objectives, delivering:

• Additional synergies of 15% on operational costs
• 13% CAGR on revenue (organic growth) for the 3-year plan.

EFESO Management Consultants was selected to support a US-based Private Equity firm and one of its portfolio companies to conduct a thorough operational performance review and associated due diligence of a potential acquisition target industrial bakery company based in Portugal.

The target company ran a significant local operation of 500 employees spread over two factories, located in Portugal. The target company generated global sales in excess of €70 M in the past year, with most products sold under private label and for co-manufacturing customers.

The focus was on assessing the performance of maintenance activities and reviewing the company three-year investment plan.

Our approach

During this three-week project involving an international team, we conducted:

• A preliminary extensive analysis of the target company’s investment plan, with a particular focus on variances between planned and actual historic investments, a ‘deep dive’ on selected investment projects, and a cost-benefit analysis
• Expert on-site visits at target company premises. We ran a qualitative assessment of overall operations and a detailed review of current assets’ status, and an identification of related investment opportunities
• A review of maintenance activities, combined with a performance-related, organizational structural re-design and capabilities program of development, in order to improve equipment and asset management
• An investment plan review, with identification of additional/ alternative levers, and the prioritization of expenses according to preliminary estimation
• A validation of the Capex amount expended on key projects, obtaining ballpark quotations from third parties and asset suppliers

Results

The three-year investment plan review permitted the identification of Capex adjustments of 105% in terms of initial budget value allowing the Private Equity firm to properly size the Capex and Opex amount required by the investment.

EFESO Management Consultants was selected by an Italian Private Equity firm to conduct a thorough operational performance review and associated due diligence on a target industrial group based in Italy. The target group operates in the industrial surface treatments and additive solutions industry and has a global footprint (headquartered in Italy, with 16 operating units across Europe, US and Asia). The goal was to better understand the general organization and industrial footprint of the group in terms of:

• The robustness of the operations model adopted in the factories, and the state of maturity of the associated end-to-end supply chain processes
• The management processes and principles adopted in respect of the management of these end-to-end supply chain activities
• The sustainability of the operational growth plan, and the group’s planned industrial investments
• Possible synergies or feasible and achievable rationalizations through a revision of the current operations model

Our approach

During this three-week assignment involving an international team, we conducted an initial desk review for the entire group, and then made a detailed assessment of five operating units.

Results

We identified a potential efficiency improvement of 10-15% and an indirect productivity improvement of 15-20%, enabling a review of the investment budget in support of the three-year business plan.

Client situation

The client is a global leader in Materials, Solutions and Chemicals, ranked in the top 10 of the European chemical companies. EFESO performed a Proof of Value in one of the flagship plants of the company, a plant which manufactures half-finished products from raw materials.

The client was facing high maintenance costs as 43% of maintenance jobs were unplanned and urgent and therefore often had to be scheduled for night shifts or weekends.

Over a six months period, we reviewed the relevance of predictive maintenance across all equipment families in the plant. We worked intensively with maintenance, process experts, IT and their data science teams on developing a system to detect and avoid failures for 17 different equipment families and brought online a total of 33 equipment.

The main objectives were to prove the business value of predictive maintenance and to develop the client’s in-house capability to autonomously select, develop and implement predictive maintenance solutions for their assets.

Approach

EFESO support was focused on:

• Working intensively together with the client to build a Predictive Maintenance (PdM) system, which is run entirely on an open-source platform, while simultaneously developing the capability at the client to run future PdM projects on their own
• Capabilities were built on:
  • Capturing maintenance and process expertise into algorithms
  • Technical Platform selection for Predictive Maintenance
  • Integrating the methodology into day-to-day work
  • Calculating business cases for further equipment per site and across GBU

Results

• Developed data architecture for automated processing of sensor, MES & ERP data and generating classifications of equipment failures
• Created dashboards for exploration data, alert system for output of the prediction models and machine learning model performance
• Proved the business case to roll out predictive maintenance to 8 other plants of the Business Unit, and prepared the roll-out approach and plan. By applying the right priorities, the roll-out finances itself.
• Implemented Knowledge transfer on applied Data Science methodologies.

Client situation

The client produces Urea in a large-scale Urea reactor, and it is the core ingredient to downstream chemical plants on the same site.

14 months previously, problems with the Urea reactor began and since then, the reactor has come to a standstill 4 times due to a process failure. In fact, the problems were so severe that output reduced to less than 50%. Losses amounted to more than €10 Million

The client’s efforts to resolve the problem were without success and the root cause(s) could not be identified.

Approach

EFESO was asked to guide an expert team to identify the root cause:

• We put together a team consisting of Engineers in Chemical Technology and Applied Physics along with problem solving experts.
• PM analysis was used for this complex problem. This very thorough approach looked at the Physical Phenomena to really understand the Mechanics of the problem
• After carefully excluding many possible causes, the root cause was finally identified as being related to the introduction, in early 2019, of a new chemical used for lubrication and sealing in a pump upstream of the reactor
• Reversing the root-cause established a good stable high performance of the Urea reactor.

Results

• The problem was fully eradicated
• The reactor is operating at a stable, high performance
• The root-cause was proven using causal effects, with supporting theoretical explanations
• Early indicators of the problem have been identified to monitor possible decay
• Internal change processes are under review to prevent the recurrence of similar mistakes

The Senior Technologist Urea Factory said “In my 36-year career this is the most frustrating problem I have ever had to deal with. I would never have guessed that that was the root-cause”

Client situation

Our Client is one of the world leaders in specialty chemical, active in more than 100 countries around the world and with over 33,000 employees.

After a strategic “reset” of the organizational setup, the Client needed to develop and harmonize the maintenance function. There were some “jewels”/best practices available in different sites but not shared across the network. The need to strengthen the ONE TEAM mindset, to ensure one way of working, as well as to prepare expectations for long-term change was critical. They were for example willing to install autonomous transformation infrastructure to improve asset reliability and maintenance costs. As such they needed to harmonize the maintenance function and improve cross-collaboration to optimize maintenance investments.

Approach

EFESO Management Consultants supported the leading specialty company in two phases:

Phase 1:

• Collecting all good practices and ways of working (across 17 selected focus sites)
• Selecting 50 change agent candidates who were involved from “day 1”
• Setting up of a change agent academy ready for phase 2

Phase 2:

• Deep dives per site – building bridges across the organization
• Developing roadmaps including improvement areas
• Implementing a ‘Boost approach’ at pilot sites to accelerate tangible benefits and implement improvements
• Setting up site-specific/local infrastructure to drive further implementation

Results

Quantitative results:

• 50 Change agents developed worldwide to act as catalysts for transformation in 17 sites
• €50 M€ annualized benefits. During the first year the implemented improvement enabled to achieve 10 M€ annualized (total benefit equivalent to 9% maintenance spend reduction)

Qualitative results

• Developed standards and shared good practices related to main maintenance processes
• Significantly improved organizational trust and collaboration

Client situation

The client manufactures luxury vehicles with an already established Lean Production System and high variant spread. However, the company was facing several challenges like problems during ramp-up of the second series to production line, introduction of a third series on the same assembly line and volume increase doubled within a few months

Approach

EFESO supported the automotive Client by:

• Taking a structured & parallel approach for Lean Transformation with early manager involvement including:
  • 3-week analysis and concept phases
  • 6-week implementation phase
  • 8-week light support phase
• Ensuring there was focus on KPIs per division right from the start
  • Hours Per Unit (HPU), Right First Time (RFT), Defects Per Vehicle (DPV)
• Recording comprehensive video of process sequences and joint waste analysis for 2 series model variants
• Improving process and design of new series in the form of 3P (Pre-Production-Planning)-light workshops
• Consolidating Yamazumi boards of all processes and parallel line balancing of the three series

Overall, a targeted implementation with prioritization of metrics.

Results

• 85% increase in manufacturing volumes of finished cars at the plant
• 15-25% productivity increase after only 8 weeks
• 20% Total Productivity at the plant confirmed after 5 months
• 30% improvement of Quality KPI "Right First Time" (RTF)
• -30% reduction in the assembly line cycle
• Reduction of rework effort through quality control loop improvement
• Focused Lean Transformation along the entire assembly line with 5 parallel projects
• Smooth introduction of pre-series vehicles into production

Client situation

The Client, a global Aerospace & Defense player wanted to develop a 4.0 World Class Manufacturing (WCM) system and a digital strategy for both the Group and its local sites.

They also wanted to generate additional savings on transformation costs (compared to “traditional” WCM budget), as well as to support the management, control and reduction of the Covid-19 risk.

The approach

We supported our Aerospace & Defense Client by:

• Creating a Governance dashboard including:
  • WCM data integration and consolidation in a data lake
  • Integrated application landscape to support data analytics and visualization
  • Systematic prioritization, stratification, understanding of problems, root-causes and PDCA (Plan-Do-Check-Act) application
• Digitalizing WCM Pillars:
  • Digitally enhanced manufacturing operating model sustaining loss eradication
  • Digital apps and tools to support WCM Work Processes
• Defining a WCM 4.0 implementation roadmap:
  • Integrated and structured approach to develop Client “digital factory” vision and roadmap
  • Digital and I4.0 technologies selection based on use cases
  • Prioritization of use cases based on effort and impact evaluation

Results

• x2,9 Return on Investment
• Reduced Non-Value-Added (NVA) time (data collection, consolidation, …)
• 12 digital platform apps available
• 24 use cases selected out of over 130
• Digital standard Covid-19 risk assessment implemented

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