Industry case study

Implementing IP-based solutions for MMC Services, achieving 50% time savings and 10% cost reduction

Construction industry, lean

Situation

Supplier of MMC services to the construction sector, including:

  • Design
  • Manufacture (off-site)
  • Installation (on-site)

A transformational, IP-based solution reducing construction timelines by 50% and costs by 10%.

Constrained manufacturing site and capability in the face of medium-term goals to increase volumes ten-fold. 

Approach

Following a full potential analysis, the implementation approach was designed around delivering fast-track gains followed by a second, medium-term phase.  The initial, fast-track approach comprised:

  • Change Management: management and employee workshops were used to change perceptions on the need for change, increase ownership, introduce best practices, improved skills and behaviours and drive improvement activities.
  • Operational Excellence Workstream: value stream mapping and videoing of key manufacturing processes enabled workshop participants in each area to make an objective reassessment of performance and develop new ways of working.  As a result, short- and medium-term actions were developed to improve factory layout and workflows, remove bottlenecks and increase plant efficiencies, revise operating standards and develop more effective ways of working.
  • Management Excellence Workstream: an end-to-end review of management processes and benchmarking against best practices, led to the design and implementation of management processes that promoted greater levels of transparency and improved control of key performance levers.

Training and coaching managers in their application to develop a more proactive and performance-centred management culture helped to ensure early adoption and application to drive performance improvement.

Results

20
%
increase in EBITDA
50
%
increase in productivity
4
x
fold capacity increase
5
%
reduction in material costs through better sourcing and process innovation
3
x
return on project costs

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