At the most profitable and productive company of 11 factories in the Peikko Group, we increased efficiency even more
Increase in efficiency at Peikko Slovakia brought cost reductions
The PwC OpEx team carried out a transformation project at Peikko Slovakia from May 2019 to March 2020. The aim of the project was to reduce costs by increasing production efficiency.
Peikko is a global leader in thin ceiling structures, anchoring and joining of prefabricated structures, reinforcement elements for monolithic structures and in solutions for wind energy and industrial floors. The subsidiary of a Finnish family company, Peikko Slovakia, based in Kráľová nad Váhom posted annual sales of EUR 38 mil. in 2019 and employs over 300 staff.
What did we achieve together?
- We updated the planning and this allowed us to plan 27% more production per week
- We found the overall potential for raising standards to be 15-25%
- Through production observations, we found that 48.3% of the production time of workers was used inefficiently
The implementation of the joint project between Peikko Slovakia and PwC took place in three stages:
Analytical part - 8 weeks
The aim of the analytical part of the project was to evaluate process efficiency. We then briefed the client on which processes to focus on, what could be improved, what tools could be used to achieve improvement and what benefits the company would obtain. In this phase, we looked at the processes and management system, production, back office, procurement and planning.
Design phase - 2 weeks
In the design phase, we created joint teams of PwC consultants and Peikko Slovakia representatives, so that the individual expert team members were focused on the target area and able to build a project plan together.
Implementation - 24 weeks
We implemented the transformation project with the help of teams and project management.
We achieved the following significant results during the joint project:
We introduced a capacity planning tool.
We created production management systems and organization.
We unified and adjusted all the production standards.
We created a set of KPIs and deployed them in the process.
We implemented SMED methodology and trained employees.
We designed and implemented the reengineering of the welding robot workplace layout.
"We are already seeing the results, in one of the key productivity indicators - planned vs. realized hours - we have improved by almost 8% year-on-year. And this, of course, has a positive effect on direct costs. All thanks to the willingness to embark on the process of improvement, not to give up and to finish the project and maintain the implemented changes. We would not have been able to do that without the external support of the team of professional and energetic people led by Pavel Dvornák. "
"People very often have a sceptical approach to solving improvement projects by external companies, we often hear - what do external consultants know about our processes? We have always done it this way. In our case, it was crucial to convince the key people to cooperate - influencers working on the machines, listen to them, motivate them correctly, and they were the ones who pushed the project forward."
"We have implemented the most successful projects for companies where the CEO had clear expectations and the company has been working continuously to increase efficiency before the project. On the Peikko Slovakia project, I was most pleased that even at the most profitable and productive company of 15 factories in the Peikko group, we managed to increase efficiency.."
"I would like to thank the entire Peikko Slovakia team for their approach and open thinking, without which it would not have been possible to successfully implement changes."
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