Case study
Driving value through the supply chain
We helped to secure the longevity of a naval maritime construction business by increasing cost certainty around its provision of vessels to the Navy, through supply chain efficiency and cultural improvement.
Our Impact
Client challenge
30% manufacturing throughput increase.
benefit delivered under MOD scrutiny at greater than 20:1 ROI. $2bn+
Operational planning and business process re-engineering – improved material availability, sequencing of work, and labour force utilisation. Digital innovation – alongside the client’s IT department we introduced digital innovations, including a live “work-to” list and a new dashboard to allow managers to track performance metrics and identify issues. Procurement process improvements – supported the renegotiation of more than 60 contracts with key suppliers. Using a “should cost” model, and by providing training to negotiators, our consultants have delivered huge savings. Supplier side services – reduced problems caused by sub-optimal quality or late delivery of components. We helped the client to introduce a more forensic approach to supplier risk, which allows managers to prioritise interventions, and keep the overall build on track. Organisational review – built and implemented a quarterly organisational health survey; redesigning 23 teams to strengthen accountability. Reworked teams communicate better and the organisational structure is optimised to get the best out of the improved operational model.
The client faced pressures to show tangible improvements in cost and schedule certainty across its overspent build programmes to both meet its commitments, but also to make the strongest possible case for continued work into the future. In response, the client set a massively ambitious 20% improvement goal across the enterprise under the umbrella of a large and complex portfolio of transformation.
600
improvement in pace of design. 60%
new weekly 1:1s in engineering teams, improving workforce engagement and leadership visibility
Complexities
Overspend in build programmes was set against a backdrop of intense political scrutiny. With an organisation of over 10,000 employees and $3bn annual turnover, the enterprise improvement goal was one of the largest, and arguably the most important, national defence programmes A core challenge was delivering sustainable change in a complex, safety critical, and highly regulated organisation.
Training and development – improved management capabilities where gaps were identified.
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