Chemical Manufacturer Harmonizes Processes, Implements Enterprise-Wide Standard Work and Organizational Design to Reduce Costs, Increase Capacity and Manage Knowledge
Key process areas: Plant Operations, Improve Plant, Maintenance, Reliability, and Quality
Client Context
- Global specialty chemical and performance material company with a revenue >$10B
- Multiple sites worldwide, ranging in size, technology and complexity
Key Challenges
- Immediate need to improve productivity and significantly reduce costs.
- Disparate work processes that differed globally by sites.
- No standard organizational model with consistent roles and responsibilities.
- Aging workforce and rising attrition caused loss of institutional knowledge.
- Acquisitions over the client’s long history resulted in increased complexity.
The goal was to create global, harmonized standard work to improve efficiency and effectiveness, and to simplify operations.
Approach & Key Success Factors
EFESO partnered with the client’s Global Leadership Team to develop and implement standard work supported by a robust change management program. The new strategy and actions included:
Organizational Design: Develop and implement a streamlined, role-based organizational model for each site that de-layers the organization and provides clear responsibilities and accountability by role.
Standard Work: Build and implement a standard work process based on industry best practices and client nuances, develop supporting materials including process maps, role descriptions and detailed work instructions.
Change Management: Deploy change management program to support implementation and sustainability of standard work.
Program Management Office: Provide oversight and governance to implement a new way of working at multiple global sites to capture significant productivity gains.
Results
Accelerated implementation leveraging best practices templates
$25M
Cost reduction: optimize & de-layer org model
15%
Increased capacity unlocked against current year production
$12M
NCM reduction & disposal cost avoidance
60
Process map templates
90
Role description and responsibility templates
600+
Pages of detailed work instructions