PA uses time as the dominant measure of performance to assess the end-to-end supply chain, coupled with a series of supply chain profiling tools and techniques, underpinned by the sort of lean principles normally restricted to the production environment. This enables PA to deliver a level of insight into supply chain operating costs that equips clients to achieve a step-change in operating performance.
Case studies
Philips DAP - Improving on-time delivery to speed up the innovation cycle
Philips Domestic Appliances and Personal Care develops, manufactures and sells consumer goods such as shavers, vacuum cleaners and coffee machines. Philips is the leader in the global market for shavers – and maintains this position through product innovation. As such, an effective innovation process is essential to retention of this leadership. PA Consulting Group worked with Philips to improve on-time delivery of prototypes, tools and equipment, which are crucial to the performance of the innovation process. By implementing process changes and a new IT system, on-time delivery increased from 35% to 75% in just four months.
Swift Group - Innovative approach to operational improvement in a family owned business
The Swift Group, a privately owned manufacturer of leisure vehicles (motor homes and caravans), grew aggressively in both the UK and Europe during the 1990s mainly through acquisition. However, this rapid growth did not lead to a comparable increase in profitability due to increases in operational complexity, adverse exchange rate movements and the reliance on a few key directors for decision making.
The challenge was to change the business while maintaining ‘business as usual’.
Using a hypothesis-based approach PA was quickly able to establish nine key projects to develop solutions focused on the business strengths while adding the required process structure. The business has benefited from this tailored approach to making operational improvements in a very competitive market sector, with the required savings being realised far more quickly than envisaged.
A major international car manufacturer - realising supply chain savings
This company had undertaken initial cost modelling and benchmarking on several major engine components and had identified potential cost savings. However, their main concern was how to realise these savings. PA developed the commonly-known value stream mapping process into a 'holistic, ten-step' approach that was applied to the supply chain of each product that had been identified as having a cost gap. Facilitating a cross-functional, cross-company team, we used the process developed to determine the value of the product and then identify waste. We then devised and delivered a programme to eliminate the waste and to achieve the cost reductions identified.
