The client needed help to develop the supply chain function within product development. Despite the technically advanced nature of the client’s operations, improved project management skills led to a project return on investment above 300 percent.
The company is part of a Swedish group which has more than 13,000 employees and is listed on the Swedish Stock exchange. It has approximately 1,000 employees including 600 engaged in Research and Development (R&D). A multi-site company with R&D and Production in four plants, its business is advanced technological products and systems for a demanding global market.
The company wanted to improve its business in the total Supply Chain, and asked Mantec to undertake a pre-study in Development & Technology. This was carried out using a combination of analysis and workshops with the management team in order to define areas of improvement. The main finding was that connections between line and project management were weak, which led to lack of control of projects and unclear roles and responsibilities.
Based upon the pre-study findings, a project was defined jointly between Mantec and the client with the following objectives:
- reduce time to market;
- reduce lead times;
- improve project control (delivery performance and cost); and
- improve planning and cost calculation of projects.
Time to Market was addressed by improving the configuration of product structures and management itself, as well as the organisation of engineering changes.
Lead times and project control were improved by breaking down company goals and deploying them to the relevant levels throughout the organisation. This gave the management team better control, and the objectives of middle- and first-line managers were clarified. In addition, a Visual Management System was implemented, which enabled first line managers to get more involved and communicate better with project teams.
The need for more precise planning and calculation of all projects was addressed by setting up a Project Office. This enabled more effective organisation and better communication with Marketing and Sales.
Throughout the project, work on the main objectives was supported by group work and one-on-one coaching to improve leadership values and attitudes at all levels, and this was consolidated in the overall company by conducting workshops with the management team.
The main benefits to the client of successfully implementing the project have been:
- delivery performance has improved from 70% to 95%; and
- overrun on projects has decreased accordingly.
The improvements correspond to a project ROI of between 300% and 400%.