Business case 'Improve productivity' at logistic service provider

SITUATION (INTRODUCTION)

  • The client is a player in specialized logistics services with a multinational supplier of consumer electronics, computer software and "online services" as the underlying customer
  • The management has indicated that it wants to gain more insight into and improve the productivity of the Technical Service operation

COMPLICATION (PROBLEM)

• The challenge lies in positioning production within the organization

• The main bottleneck is that the production manager does not bear / feel the responsibility for the daily operation

NEED (SOLUTION DIRECTION)

• The customer's goal is to achieve a better competitive position both within and outside the group.

• The assignment consists of a number of sub-assignments with the red line to improve productivity.

APPROACH (GIVING SUBSTANCE TO ASSIGNMENT)

In the role as operations manager, improve the operation within 3 months.

a) The organization of the operation is divided into specific sub-areas per manager in order to obtain a clear demarcation with individual responsibility.

b) Production planning is arranged by central planning together with the employment agency, outside of production. A model has now been developed and introduced in which the central planning / employment agency based on the "customer forecast" will determine the number of hours required. Based on this need, the planning / competence development of the employees in the workplace is carried out by the managers themselves in the short and long term.

c) A clear dashboard has been developed with which managers can manage their own operations on a daily basis. The KPIs are extracted from this for management. Every day, the results in scrums are discussed by the managers with the employees and improvements are made together with the employees to increase productivity.

d) The layout of the operation was created by adding partial operations in the past without regard to the flow of the various products. The managers have jointly determined / introduced a new layout in collaboration with management and customer, with a clear flow in production.

Results achieved

20%
Productivity improved by 20% in 3 months
100%
Management considers 100% production as the engine of the organization
100%
The managers carry / feel 100% responsibility for the operation