Our client was a prominent whitegoods manufacturer with operations in Asia-Pacific and North America. The client designs, manufactures and distributes mid- to premium-range whitegoods, as well as high end kitchen appliances under a subsidiary brand. Products were distributed through retail and commercial channels.
The client was making a loss as fixed costs were too high, and gross margins were shrinking as competition intensified in key markets. The client identified numerous improvement projects across all areas of the business, however was having difficulty prioritising and implementing these projects.
PIP was engaged to help the client’s Transformation Office, using PIPware CI to build a pipeline of projects worth $150m in profit improvement, and set up execution disciplines to ensure the business could deliver the benefits within 18 months. PIP provided a small support team working at the executive level of the business, and using PIPware as a program management tool, the program was driven heavily “through the line”, ensuring complete program ownership and sustainability.
What we did:
- Established a client led, PIP assisted transformation office using PIPware CI, including establishing transformation leaders in every work stream across the business.
- Coached transformation leaders and project owners in the essential tools, including PIPware CI, needed to plan and implement business improvement projects, including:
- Valuation of business improvement ideas using value driver trees.
- Development of robust implementation plans.
- Defining and creating KPIs critical to benefit delivery.
- Gained real-time visibility into 500+ initiatives including, but not limited to: savings value, accountable owner, and status of initiative.
- A pipeline of over 500 internally generated business improvement ideas managed in PIPWare CI.
- Over 150 continuous improvement opportunities contributing $80m in profit.
- Over 350 sourcing and product cost reduction opportunities contributing $70m in profit.
- A weekly review cycle from CEO down to idea owners to keep pace, execution discipline and accountability for results.
- Over 400 initiative owners and managers trained in PIPware CI, business improvement methodology, skills and tools.