Operational Excellence

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The demand for customer-focused, integrated operations and cost management has never been greater. In operations services, we help companies optimise their supply chain by transforming their key value chain functions. We help with everything from customer management, to production, to the sourcing of goods and services. We apply proven steps to facilitate agile responses to changing conditions and to drive business growth and profit. We support clients in order to improve value, reduce waste and costs, and to leave lasting, sustainable benefits.

Operational excellence services:

Quick Business Review

Quick Business Review is a tool used to identify opportunities for quick cost savings and to quantify potential long-term improvements in different areas. The method is focused on time and cost efficiency and usually lasts 1 to 4 weeks for one plant or operation. We focus especially on industrial manufacturing, chemicals, rail transport, energy, and financial services companies. These projects have always yielded very high returns for our clients.

Typical issues

  • You want operational restructuring and improvement, but you do not know where to look and how to achieve it.

How we can help

  • As highly experienced consultants, we will provide an objective point of view to show you ways to cut costs in production, sales, logistics, supply chain, and overhead.
  • We will deliver a list of quick ways to cut costs or increase revenue in less than 6 months.
  • We will quantify the potential for future improvement projects in operations, supply chain, sales, or restructuring. We will then draft a plan for a project that can be run internally or with consultants.

Procurement and sourcing transformation

PwC has a local procurement and sourcing team that works with our global experts to bring cost savings to both local and global clients significant. 

Typical issues

  • The procurement department is focused on transactional activities instead of strategic sourcing.
  • Sourcing strategies are missing for each category.
  • The supplier base on a group level is too broad, especially within the indirect material.
  • A large percentage of spend is sourced from high-cost countries.

How we can help

Improved leadership, management, and technical competencies will result in higher motivation and better operational results, such as higher customer satisfaction levels and lower input prices.

  • Build a new target operating model in which the procurement department is focused on creating value through strategic sourcing.
  • Design and implement a system for global outsourcing, low-cost country sourcing, or e-sourcing.
  • Run advanced data analyses on spend – identify potential savings and discover fraudulent behaviour.

Manufacturing excellence, Lean Six Sigma and Supply Chain

Customer-centric material and information flow from the receipt of the order to the dispatch of the finished goods are essential for every manufacturing company. We help implement Lean principles and use methods such as Pull, KANBAN, quick set-up times - SMED, total productive maintenance - TPM, and quality and statistical process control to eliminate waste from the value stream and to increase quality, capacity, and flexibility while reducing cost, inventory, and lead time.

Typical issues

  • Unnecessary high levels of work-in-progress and finished goods inventory caused by missing production flow and supply chain control and integration.
  • Inconsistency in the quality of output is resulting in rejects, rework, and material over-usage, which is impacting lead times and costs.
  • The production equipment suffers from unexpected failures and downtime resulting in limited availability.
  • Long set-up times during changeovers between different products resulting in limited flexibility and availability.
  • Low accuracy of inventory positions in the warehouse, missing goods, and low quality of supporting data.
  • Late or incomplete orders and supplies to distribution points.

How we can help

  • Redesign your production flow and supply chain using the leading practice methods based on Lean manufacturing. We can remove waste from the flow, shorten lead times, decrease work-in-progress inventory, and develop a customer-focus.
  • Implement a system for better control of sourced material and use advanced techniques of statistical process control during the production. This will reduce scrap, rejects, rework, and material over-consumption.
  • Facilitate the shift in maintenance from fire-fighting towards prediction, thus increasing the planning capacity and equipment availability for production and reducing the maintenance costs.
  • Design visual management, enabling everybody to quickly and easily assess how each part of the company is performing regarding every important variable.
  • Design improvements of warehouse management systems in terms of processes, responsibilities and supporting technology for quicker dispatch and improved inventory management.
  • Implement pull-based inventory models and redesign planning processes for better service levels with less inventory.

Operational restructuring and cost reduction

The pressure for low costs and high efficiency has never been greater. PwC Operations team helps firms remove waste from their operations, focusing mainly on the reduction of overhead costs and personnel costs and the cash release from client’s assets and working capital. We work across many different industries, from energy, to manufacturing, to financial services.

Typical issues

  • Your key objective is to achieve quantifiable improvements by minimising inefficiencies, improving decision-making processes, and improving control methods.
  • Your overhead and personnel costs are higher than your benchmark, but you are not sure where to focus.

How we can help

  • We find opportunities for tangible and quantified cost reduction.
  • Our recommendations are backed by complex analytics of your accounting transaction data, observation, deep-dive interviews, and brainstorming workshops.
  • We will help you quickly release cash from your assets and working capital.

Sales Force Effectiveness

Capture leads, convert them into customers, and maximise volume and price: the sales process is the key profit driver in all companies. The effort put into sales optimisation has a wide-scale impact on an organisation, compared to cost effectiveness initiatives. We know how to redesign the sales department and significantly increase revenue.

How we can help

  • Implement standard sales processes, customer relationship management, account management, lead management, and pipeline management based on best practice.
  • Optimise the roles and responsibilities in the sales department in order to maximise profit.
  • Focus your sales force to look for opportunities with the highest profit potential.

Activity based costing and pricing in manufacturing

Decreasing margins in traditional manufacturing markets require companies to manage costs and prices more closely and accurately. According to our experience, the majority of manufacturing companies do not have reliable information on individual products and segment and customer profitability. Many products, segments, and customers generate significant losses without companies even realizing it.

Typical issues

  • There is uncertainty about profit margins on individual products and customers.
  • Some products, segments or customers generate losses.
  • Management does not have enough reliable data to control and manage profitability.

How we can help

  • PwC analyses how cost calculations are performed, the underlying rules, and how accurately these represent actual processes and activities within the company.
  • We look into what kind of information is reported to management and, if necessary, redesign the reports to reflect the most important pieces of information.

 

Typical manufacturing value chain has significant opportunities to increase profit through the implementation of best practices