Project Example - Heavy Industry Process Redesign

Background:
  • Shrinking margins in the standard steel industry reduced the clients profitability and liquidity. To prevent bankruptcy within the next years, fast and significant measures were required.

Project approach based on 3 phases:
  • Project kick-off and analysis
    • Ensuring project resources
    • Client mobilization (workshops, in-house PR events, company newspaper) 
    • Focus interviews, benchmarking
    • Definition of project targets (cost reduction of 30%, limit on measures with payback within 2 years)
    • Detailed project plan (duration 2 years, 10 departments involved)  
  • Identification of measures (pilot, then roll-out on all departments)
    • Creation of improvement team (rkbc consultant and department‘s team members)
    • Identification of key improvement areas using cost information from controlling
    • Idea creation (brainstorming, workshops, process analysis, ...)
    • Financial validation of all measures
    • First implementation of quick wins
  • Implementation (performed by client)
Project results:

  • Cost reduction (over 100 mn EUR) achieved within 2 years, thereby regaining long term profitability

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