A leading building services company was suffering from weak growth and performance. The implementation of innovative products was clearly too slow and there was a lack of focus. Quality problems were becoming more frequent. An important future project was repeatedly postponed. Production costs were rising, partly due to outdated systems, long throughput times and expensive rework. To summarize: Competitiveness was at risk. The interim manager was hired to bring new structure and dynamism to innovation, project management and production.
Restructuring by division and creating a focus on innovation management
The interim manager took over the tasks of the former Chief Technology Officer. As part of the restructuring process, he initially reorganized the development groups by division. In order to overcome the numerous production problems, he set up a platform development department. At the same time, he developed a new approach to innovation management in the form of Business Development, which better reflected the company's objectives and thus served to sharpen its focus. The interim manager also contributed to this concentration on the essentials by organizing multi-project management across divisions together with the project managers.
Lean production techniques established with competitive structures
A lean management initiative had already been launched at the company years ago, but had only been implemented in rudimentary form. Important elements such as store floor management, for example, had been abandoned. As production manager, the interim manager worked with the team to develop a concept for implementing lean structures. The key components included:
- Chaining of process steps
- Decentralized elements in order throughput
- Basic training on the lean concept
- Introduction of store floor management
- Establishment of manufacturing partners for simpler traditional products
- Reorganization of material flows
- Integration of testing processes
- Renewal of old production systems (component assembly, automation systems, storage systems, etc.).
In addition, the interim manager specified the tasks, competencies and responsibilities of the managers in the team. He also brought additional expertise in testing technology on board and trained a team member as a lean expert.
Optimization of material procurement, IT and forecasting significantly reduces costs
The interim manager also set up a project with an external partner in purchasing to reduce costs in the area of materials and process costs. In close cooperation, material costs were reduced by well over one million euros.
The development of new suppliers and the reduction of process costs through IT-supported tools and procurement on pool platforms also helped to improve quality and reduce costs. An improved forecasting process made it possible to sustainably reduce inventories.
Result: Technical divisions are sustainably geared towards the future
The new structure achieves the mandate objectives of market-driven product development, cost reduction, efficient innovation management and new production structures. The expansion of lean structures and additional production partners will break new ground and reduce costs. Initial encouraging successes are unleashing new potential.
