9% profitability improvement through workflow improvement
BUSINESS CONTEXT
- Industrial Service Provider of Insulation and Scaffolding.
- Multi-Site.
- Low-margin business with continuous pressure to further reduce cost.
- Various unsuccessful attempts to improve productivity.
CUSTOMER NEED
- Improve labor productivity.
- Demonstrate success on best and worst performing sites.
- Adjustments of working practices to ensure sustainability.
RESULTS
- Direct labor productivity improvement by 12%.
- Bottom line profitablility improvement from 2% to 11%.
CHANGES
- Implemented Performance measurements at job level instead of aggregated level.
- Daily monitoring of performance against standard.
- Improved labour planning.
- Job planning and preparation.
R&G APPROACH
- Create factual operational insight through new metrics.
- Created acceptance by verifying assumed root causes through data analysis and observations.
- Implemented measures for proven root causes.