Case Study

Streamlining the End-to-End Value Chain

Streamlining the End-to-End Value Chain

Sector Manufacturing

Situation

This assignment focused on streamlining the End-to-End Value Chain for a mid-sized furnishing company at Muscat, Sultanate of Oman

Actions taken

Numerous actions were taken to seal the profit leakages & setting up a robust Excel-based data capturing & monitoring system

Results

Several process controls were introduced in the system & activities were streamlined to curb various areas of profit leakages and results were widely appreciated

Situation – deep dive

ABC Co. is a mid-sized furnishing company that dealt with interior designing, joinery & related works, primarily aimed for hotels, villas and the kind. This assignment focused on enabling a stronger flow of value through the value chain. Introduction of process controls in shopfloor area, drawings, estimation, etc. and bringing to surface the actual quantification of performance throughout the value chain were the broad focus areas of this assignment.

The project objectives therefore were:

  • Streamline the Value Chain in order for it to become more efficient & lucrative
  • Improve the visibility of the performance through data capturing & monitoring systems
  • Introduction of process controls in order to seal the now visible profit leakages

Actions Taken – deep dive

The RMAOR™ approach was undertaken at ABC Co., which derivation of the initial state of the key concern areas that emerged from the Brown-paper mapping (Value-chain mapping) exercise. The 2-day workshop on ‘Lean Improvements’ was held to direct the team towards a collective effort for improvement & curbing profit leakages, followed by the lean charter preparation. This contributed to the activities of the Recognize Phase.

The Measure Phase followed next. In order for the diagnosis to be accurate, the concern of lack of data availability, the baselines & targets for the KPIs were taken as mentioned by the Management verbatim. The As-Is mapping of the processes took place, to identify the key areas where there was a requirement of certain checks & balances to tighten the grip around the profit leaks.

Highlight of the Analyze Phase, was to identify the key problem areas across the value chain, which the core team was directed to brainstorm on with our guidance. Root-cause Analysis engendered a list of reasons why the organization lost opportunities of increased profits. The primary reason was lack of data capturing & monitoring mechanisms, which allowed the profits to slip through the management’s sight.

In order to challenge the status-quo, in the Optimize Phase, the several key data capturing systems, such as Enquiry Register, BOM & Material consumption registers & overall project planning sheets were formulated & suggested for use at the organization. To ensure reviews of the key charts & figures that indicated the organization’s overall health, a dashboard review mechanism for the management to review.

Finally, to ensure sustenance of the project initiatives, in the Repeatability Phase, we monitored the implementation of the solutions & monitored the scores of the respective employees to ensure adherence to the committed solutions implementation. Dashboard Reviews enabled frequent monitoring of the status of the project & its health.

Results – deep dive

  • ABC Co. has appreciated SSA’s approach and has commended the Lean transformation process presented to their senior leadership team
  • The Entire Value Chain profit leakages were identified & plugged with process controls
  • Data capturing and monitoring systems were established in order to chart the status of various key areas of the project such as Drawings, Material Approvals, Execution Status, Invoicing, etc.
  • Continuous Reviews of Project Progress enabled the top management to monitor the project health & take necessary actions in time to further the overall profit profitability