Formulation and deployment of Operation Strategy – Restructuring the entire Value Chain
Background
The client is a leader developer and supplier of complex engineering systems to the aerospace and defence sectors. We were engaged to formulate and implement an operation strategy to enable the business to move away from being vertically integrated and functionally organised to a process based organisation focused on the design & assembly and aftermarket support.
What We Did
Strategic review of the core capabilities
-
Manufacturing Make v Buy
-
Engineering Make v Buy
-
Support services Make v Buy
Sourcing Transformation
-
Formulation of Sourcing strategy
-
Set up and trained new commodity teams
-
Create new purchasing processes and infrastructure
-
Implementation of Operational Readiness Process
-
Project managed the outsourcing of parts/components manufacturing and facility management services
Through the implementation of the programme, we provided hands on training and coaching, supporting the creation of the team that is now delivering the solutions required by the business.
Results
-
Within the first two years, the supply base has been reduced by over 60%, reducing purchasing cost by over 10%, exceeding business targets.
-
Outsourcing of “non-critical” engineering activities, resulting in the elimination of high number of high cost contractors and enhanced performance
-
The manufacturing footprint was reduced by over 30%, and many high risk but low utilisation processes were outsourced. This was a precursor to a site ‘regeneration’ project that involved moving the business to a new modern facility
-
One of the most valuable outcomes of this project was the engagement of the whole executive team in developing a better understanding of the significance of the supply chain and the way forward.