Profitability problems persisted despite large internal projects. A management control system and improved process steering helped to achieve profitability goals.
Background
The company is part of a worldwide group of over 100,000 employees working in logistics, energy and manufacturing. The company, which among many other things manufactures the world’s largest container ships, has about 3,500 employees and a yearly turnover of over EUR 600M.
For some years, despite its large internal projects, the company had profitability problems and it turned to Mantec for assistance.
Implementation
The pilot study revealed significant improvement potential in several areas, mainly in the production and supply chain management. A joint project, divided into five sub-projects, was undertaken with a target to achieve an annual improvement of about EUR 60 million. The main project and the five sub-projects were all led by Mantec project managers. The sub-projects were manned by twelve Mantec consultants and eight internal team members on part-time during the twenty months it lasted.
In close cooperation with the client, this complex project engaged in several parallel sub-projects and activities:
- management team workshops;
- process mapping in the development, production, purchasing and logistics departments;
- training sessions with operators; and
- leadership training (through approximately 100 workshops at all levels).
The project also took over management of an earlier improvement programme that the client had launched.
To steer the project and drive improvements:
- effective project organisation and management with follow-up meetings was put in place;
- clear documentation was drawn up;
- clear monitoring and evaluation systems to track improvements and ensure implementation were put in place.
Continued involvement of the client was ensured through close dialogue with senior management and the CEO in weekly follow-up meetings, and monthly steering groups with management and labour unions. Internally, client project resources benefited from Mantec methodology. At the end of the project, client project members were gradually deployed to key units and departments, to maintain the impetus of the new ways of working.
Results
Benefits to the client of this complex project have been:
- the implementation of a strong and functioning management control system which includes Goals-Roll-Down and appropriate KPIs;
- new understanding and consensus on leadership and its practical applications;
- increased internal cooperation and flexibility internally, which also improved the customer supplier relationship;
- reduced absence;
- clearly mapped processes within management, development, procurement, logistics, production and administration;
- establishment of a logistic function; and
- new organisation in the development department.
The implemented improvement activities exceeded the target of EUR 60M in annual savings and represented a project ROI of about 900%
