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Driving ResultsAll thoughts must be distilled into action and action that brings results.Defusing A Supply Chain CrisisA ‘Barrel Chasing’ MindsetBUSINESS CHALLENGE The client, a world leader in packaging solutions,decided to centralise its numerous spare part distribution platforms intoa single hub, with the support of one of the world’s leaders in distributionand logistics. Within a few weeks however, it was obvious that this newplatform simply wasn’t performing as efficiently as expected, leadingto huge delays in delivery time. The situation drew critical internal andexternal customer complaints, a state of ‘crisis’ was declared by TopManagement and Celerant Consulting was brought in to lead theresponse and resolve the crisis as rapidly as possible.CELERANT SOLUTION The priority was to recover delays and implementthe agreed contractual services by the distribution partner in a sustainableway. A crisis governance structure, including a ‘Crisis Taskforce,’ wasimplemented to tackle non performance. Crisis meetings were convenedtwice a day to ensure short interval control of key crisis indicators, definerecovery actions and ensure that they were followed up until full completion.Within a few short weeks, the collaborative relationship between theclient and its logistic partner was re-established, thanks to the resultsachieved by the taskforce. 3 months after this turbulent situation, thecrisis was declared officially over by the Top Management.RESULTS All key crises were addressed within 3 months: •Daily shipmentdelays were reduced by up to 95%. •The number of spare parts referenceswaiting for reception on a daily basis was reduced by 90%. •The numberof non conformities waiting for treatment on a daily basis was reducedby 85%. •The number of virtual gaps between IT systems was reducedby 95%. •The platform workforce are now managing themselves, platformperformance and driving Continuous Improvement.BUSINESS CHALLENGE The client is a global, diversified, upstream oil andgas company with a portfolio of producing assets. It had been running anOperational Excellence programme across some of these assets in NorthernEurope for more than a year and wanted an independent review on progress.Celerant Consulting was invited to conduct an analysis of the programmeand feed back its findings. Opportunities for strengthening the approachwere identified, which resulted in a proposal for coaching the organisationto leverage behavioural change and accelerate benefits from the existingprocesses and systems. 5 assets were identified as locations for offshoresupport, with an onshore team providing design and implementation supportacross 3 workstreams, with a big emphasis on coaching.CELERANT SOLUTION The project’s aim was to deliver improved operatingefficiency across the 5 supported assets by creating a ‘Barrel Chasing’mindset. Working closely with the client team, Celerant’s experts quicklyinstalled a number of Production Loss prevention processes, a Planningand Scheduling process and used its unique Closework ® approach to coachPerformance Management meetings in order to ensure compliance.RESULTS All assets are now operating above forecast target line.•PLE processes now fully installed and embedded. •4 key PerformanceManagement meetings installed to reinforce the new performancefocused culture. •An improved Planning and Scheduling process hasalso been installed.‘Celerant provided us the appropriate methodology to solve the crisis inthe most efficient way.’ Director of Life Cycle Management Worldwide.FMCGEnergy54 CLOSEWORK® GLOBAL REVIEW 2012
Innovating On All FrontsBuilding A Better Supply ChainBUSINESS CHALLENGE The client is a new entity in the lighting industrycreated from different businesses and acquisitions, each with a differentDNA and approach to Product Development. It was operating in rapidlychanging landscape because of the introduction of Solid State Lightingand intelligent Controls (Systems and Solutions), so it needed to rethinkthe way it innovated to introduce new products and solutions quicklyinto the market. A 4 week analysis revealed an average slip of theactive product portfolio of 45% and predicted a significant shortfall inits strategic growth ambitions by 2013.CELERANT SOLUTION The company decided to initiate a major ChangeProgramme, beginning with their activities in Europe and then rollingout globally and asked Celerant Consulting to support the first 12 weeksof the Design & Training phase. The aim was to improve 4 key aspectsof performance: reduce average Time To Market by 50%; reduce nonvalueadded time on development projects by 50%; install a new MCRS ®Management System with aligned KPIs; align the roles and responsibilitieswithin R&D and Marketing. To make this breakthrough, Celerant established3 work streams: Financial & Operational to align the project portfolio tolong-term financial targets, with real-time transparency of existing andfuture projects; Business Creation to create a more manageable processthat would reduce Time to Market and maximise bang for buck; ProjectExecution to reduce process inefficiency to acceptable levels and optimiseresource allocation conform strategy. The Celerant team also extensivelytrained key client people to ensure a seamless handover after the Design& Training phase.RESULTS Three product development types were identified which haverealised significant reductions in Time To Market (TTM). •Type A, newproducts - TTM reduced from 16-12 months. •Type B, products derivedfrom existing platforms - TTM reduced from 14-6 months. •Type C,improved or cost down existing products - TTM reduced from 9-3 months.ManufacturingBUSINESS CHALLENGE The client is one of the world’s largest producersof bricks, pavers and clay roof tiles and had grown rapidly through a seriesof acquisitions. The financial crisis of 2008 marked a turning point in thepattern of economic development for the global construction industry,so the company asked Celerant Consulting help it maximise cash flowsby analysing areas for improvement and designing an integrated SupplyChain planning model that could be rolled out across the organisation.The key goals were to improve EBITDA performance, reduce workingcapital and provide first class customer service.CELERANT SOLUTION Celerant conducted an in depth analysis and basedon these results, began to design all the relevant elements for the futuresupply chain. Working closely with the client team, Celerant’s expertsdefined a new ‘One Way of Working’ across the value chain and organisationwith a standardised MCRS ® Management System, KPIs and tools. They alsodeveloped a new organisational structure with clear roles, responsibilitiesand IT system requirements. The supply chain function was closely alignedwith Sales through a clearly defined S&OP process that was embedded inthe European region with a clear RACI. Celerant also developed commonprocesses for product lifecycle management, inventory & order managementand production planning and established an inventory planning model tocut inventory levels.RESULTS A standard organisational design at all sites with a proactiveMCRS ® Management System, an optimised S&OP process and newprocesses for Forecasting and Demand Planning. •An efficient OrderManagement process focused on reliability of Order Book data so thatthis information could be used in the planning cycle. •A new inventorymanagement process and modelling tool. •Redesigned productionwheels and tools for Capacity and Supply Planning. •Product lifecyclemanagement processes and tools to accurately determine change-overcosts, cost prices and ABC classifications‘This was by far the best project I have seen in a long time.’Managing DirectorConstructionCLOSEWORK® CELERANT GLOBAL REVIEW 2011 2012 XX 55
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Page 8: The Harbour ConsultantsBright Light
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