Client situation & approach
A leading global company, active in the development and manufacturing of tires for automobiles, trucks, and motorcycles. Due to growing competition from emerging countries and from incumbent leaders, quality and differentiation have become critical success factors. In order to maintain competitiveness and operational excellence, a program was launched to address complexity costs and improve the capability to master complexity more efficiently by:
- Developing a Complexity Total Cost Model to evaluate the global cost of complexity and inform key decisions regarding product range, specs, materials, production allocation, factory planning, scheduling
- Identifying and implementing de-complexity initiatives
- Establishing a dedicated Complexity Management unit
Results
- Cumulated annual impact of more than 30% Ebitda
- Capabilities to autonomously continue and expand built
- Dedicated Complexity unit installed and operational
- Clear Guidelines and procedures defined to reduce existing complexity and limit new complexity
