$2M
Expected cost savings
Re-Engineering the Global Engineering Process
Industry: Industrial Manufacturing
Service: Manufacturing
Service: Operations Strategy and Transformation
Service: People and Organization
Our Client
A global supplier of engineered cooling systems for the power generation industry sought to optimize its global engineering process to increase competitiveness. Engineering costs were higher than competitors, leading to lost project bids, cost overruns, and delays.
The Challenge
Engineering costs were higher than competitors, leading to lost project bids, cost overruns, and delays. Key challenges included:
- Lack of standardization in engineering processes across multiple sites.
- Decentralized design practices, leading to inconsistent component designs and inefficiencies.
- Project delays and penalties due to incomplete information flow between Sales, Project Management, and Engineering.
- Highly centralized management structure, making it difficult to oversee projects effectively across multiple locations.
- Missed deadlines and cost overruns, eroding profitability and creating interdepartmental conflicts.
Real Results Achieved Together
EFESO standardized global engineering processes for cooling systems manufacturer, reducing project hours 15-50% across sites.
50%
Reduction in engineering hours at the China facility
20%
Reduction in engineering hours at main sites in Europe
Transformation Impact
- Design standardization to reduce redundant work and cost overruns
- Engineering efficiency across global locations
Our Approach
To improve efficiency, lead time, and organizational structure, EFESO:
- Conducted a full process analysis
- Investigated engineering inefficiencies across sites and product groups.
- Identified root causes of project delays and miscommunication.
- Mapped engineering activities across Europe, China, and North America.
- Developed a global ISO Engineering Policy & Procedures
- Standardized best practices across all locations.
- Clearly defined Engineering’s role in cross-departmental cooperation.
- Established common technical standards to eliminate redundant design work.
- Redesigned the Engineering Organization
- Implemented self-directed workgroups aligned with engineering competencies.
- Assigned group leaders and technology experts to oversee scheduling, tracking, and process improvements.
- Shifted from a highly centralized structure to a collaborative, site-driven model.
- Developed an implementation and training plan
- Ensured adoption and acceptance by engaging impacted employees early.
- Provided structured training to roll out new procedures and tools.
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Facing Similar Challenges?
- Identify root causes of project delays and miscommunication to improve efficiency, lead time, and organizational structure
- Standardized best practices across all locations and clearly define Engineering’s role.
- Develop an implementation and training plans and ensure adoption
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