- Operational Excellence (OpEx) Case: Supply Chain Acquisition Integration - Global High Technology Giant
As part of a global high tech giant's inorganic growth strategy of expanding into new markets, entering new technologies and growing its customer base, the company was in the process of acquiring 150 companies. The average time to fully integrate the company's new acquisitions into its global supply chain took approximately 13 quarters.
Two of our consultants led a team of 20 company subject matter experts through successive General Electric (GE) type workout sessions. The TPMG facilitated team analyzed the critical path to fully integrate a new acquisition and produced a current state analysis for the entire scope of the process. Using a Failure Mode and Effects Analysis model (FMEA), they red flagged issues relating to sequential activities, inter-dependencies, touch-times, pain points, bottlenecks, data flow and technology.
The team re-engineered and streamlined the acquisition integration process. They created and implemented the future state path to order-ability and supply chain readiness and produced a 38% cycle time improvement. They also created a suite of new key performance indicators and service level agreements for internal work streams and functions.
- Lean Six Sigma (LSS) Case: Call Center Answer Call Rate - State Utility Company
A state wide utility company needed to improve an 18% call abandonment rate and avoid a corporation commission $750k fine.
A TPMG consultant led a team of 5 company subject matter experts through the lean six sigma DMAIC methodology to investigate the potential root causes. Using lean six sigma tools, the team conducted a thorough baseline analysis of efficiency, effectiveness and operational capability. The team generated several linear and multiple regression analyses to identify the drivers to both average speed of answer (ASA) and answer call rates (ACR). They isolated inbound calls by volume, by call type and by handling time and discovered the root cause(s) of their abandonment problem. The team developed technology (IVR) and customer relations solutions that reduced certain call type volumes by more than 50%. They worked with call center representatives and developed call center procedure solutions that reduced call handling times by more than 30%.
Abandonment rate was improved and sustained at less than 5% for more than 3 years. Call center efficiency was improved by 16,971 hours (8 fulltime equivalent employees) and produced an additional cost savings of more than $272,000.00 per year.
- Strategy Case: Competitive Landscape - Electronics Assembly Manufacturer
A medium sized ($20M) electronics government sub contractor was having trouble with declining revenues and profit margins. A TPMG consultant was contracted to conduct a complete situational analysis and provide the executive team with strategic options to grow and sustain revenues and profitability.
The TPMG strategy consultant analyzed the sales, internal operations, cost of materials, and margins produced by the client's product line. In addition, he analyzed the client's competitive land scape and industry structure. He discovered a strategic shift in the industry. This shift was primarily due to the fact that the client's top 5 competitors were recently acquired by larger firms. The larger firms shifted their assembly operations to off shore low cost contract manufactures and began dumping the top competing product as a loss leader. The larger competitors used this loss leader strategy as a competitive advantage to maintain valued relationships with government contractors. As a result, the client's main product line, source of revenue and margins began to suffer from commoditization and became a generic products.
The TPMG consultant recommended the client divest itself of the company's main product line. They could no longer compete on price. Secondly, the consultant recommended the company invest in products it produced through its own intellectual property. Though units sold and revenue for those products were relatively low, the profit margins were almost 130% more than the other product lines. In addition, there was no risk of those products being comoditized. The consultant also recommended the company establish a standard product development cycle where they can systematicly turnout product extensions and innovations not just for government contractors, but to also satisfy growing interest from commercial markets. The company recovered and is now thriving.