HygieneCo - Post-Merger Performance Imrprovement Project Leads to 450% ROI

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This document has been prepared by IMC International Asia-Pacific for advertising and general information only. IMC International Asia-Pacific makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information, including, but not limited to, warranties of content, accuracy and reliability. Any interested parties should undertake their own inquiries as to the accuracy of the information. IMC International Asia-Pacific excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising therefrom. This publication is the copyrighted property of IMC International Asia-Pacific and/or its licensor(s). ©2014. All rights reserved. IMC The pluses make the difference Gregory M. Thomas Regional Director & Managing Partner Bangkok +66 (2) 207-2392 | Hong Kong +852 8191 5948 Email: [email protected] Post-Merger Performance Improvement Project Leads ROI < 400% INDICATIVE CONCEPTUAL DESIGN ELEVATION Challenge Located in Southeast Asia, HygieneCo had been recently transferred from an American multinational to a European multinational. Immediately following the sale, the new management team began experiencing issues that was slowing integration into the new mother-company. Our team was called into identify the root causes and implement preventive actions required to ensure the integration plan was back on schedule. Approach With the support of the executive management, our team undertook a Rapid Improvement Program that was scheduled over 34 weeks. Based on results of our WorkOUT, we identified the Material Management, Energy & Maintenance, Resource Loading, and the AD Line has the areas of opportunity. Following the pilot implementation on the AD Line, managers and supervisors from HygieneCo undertook implementation, with our support, on the other production lines. Results By the end of the 34 week project, HygieneCo achieved cumulative annualized savings in excess of $ 1.23 Million USD and the management and supervisors were able to successfully transplant the new control system to their other manufacturing lines. CIP Continuous Improvement Program DRM Countdown Schedule Labor Planning Overtime Control System Skills Upgrade Program Leadership Development Program GRD & Follow Up Matrix Resource Planning Energy Management System Resource Planning & Communication Tool Raw Material Management Maintenance Tracking & Control 50% 150% 250% 350% 450% 50 250 450 650 850 1,050 1,250 M1 M2 M3 M4 M5 M6 M7 M8 Thousands CUM. Investment, CUM. Return & ROI CUM Investment Cum Return ROI

Transcript of HygieneCo - Post-Merger Performance Imrprovement Project Leads to 450% ROI

Page 1: HygieneCo - Post-Merger Performance Imrprovement Project Leads to 450% ROI

This document has been prepared by IMC International Asia-Pacific for advertising and general information only. IMC International Asia-Pacific makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information, including, but not limited to, warranties of content, accuracy and reliability. Any interested parties should undertake their own inquiries as to the accuracy of the information. IMC International Asia-Pacific excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising therefrom. This publication is the copyrighted property of IMC International Asia-Pacific and/or its licensor(s). ©2014. All rights reserved.

IMC – The pluses make the difference

Gregory M. Thomas Regional Director & Managing Partner

Bangkok +66 (2) 207-2392 | Hong Kong +852 8191 5948

Email: [email protected]

Post-Merger Performance Improvement

Project Leads ROI < 400%

INDICATIVE CONCEPTUAL DESIGN ELEVATION

Challenge

Located in Southeast Asia, HygieneCo had been recently transferred from an American multinational to a European multinational. Immediately

following the sale, the new management team began experiencing issues that was slowing integration into the new mother-company. Our team

was called into identify the root causes and implement preventive actions required to ensure the integration plan was back on schedule.

Approach

With the support of the executive management, our team undertook a Rapid Improvement Program that was scheduled over 34 weeks. Based on

results of our WorkOUT, we identified the Material Management, Energy & Maintenance, Resource Loading, and the AD Line has the areas of

opportunity. Following the pilot implementation on the AD Line, managers and supervisors from HygieneCo undertook implementation, with our

support, on the other production lines.

Results

By the end of the 34 week project, HygieneCo achieved cumulative annualized savings in excess of $ 1.23 Million USD and the management

and supervisors were able to successfully transplant the new control system to their other manufacturing lines.

CIP

• Continuous Improvement Program

• DRM

• Countdown Schedule

Labor Planning

• Overtime Control System

• Skills Upgrade Program

• Leadership Development Program

• GRD & Follow Up Matrix

Resource Planning

• Energy Management System

• Resource Planning & Communication Tool

• Raw Material Management

• Maintenance Tracking & Control

50%

150%

250%

350%

450%

50

250

450

650

850

1,050

1,250

M1 M2 M3 M4 M5 M6 M7 M8

Th

ou

san

ds

CUM. Investment, CUM. Return & ROI

CUM Investment Cum Return ROI