How we delivered 10 m Euro run-rate savings with strategic workforce optimization

We increased plant efficiency by implementing a driver model and digital tools to achieve 10 million euros in run-rate-savings.

The client asked TTE for support with improving the efficiency of the company’s European manufacturing facilities to reduce labour costs.

Process investigation: TTE conducted several workshops with the management team to define a standardized list of activities performed in the manufacturing plants. In the next step, HR baseline data was collected for all locations in scope as a basis for further analysis. Together with each plant management team, we identified the underlying activities performed by the different teams.

Industry benchmarking: As all plants were different in many aspects, this benchmarking made them more comparable. To this end, TTE introduced a driver model that converted absolute benchmarking into a comparison on a relative basis – e.g. labour hours per produced unit. For validation, these findings were consequently shared with the client teams and intercompany knowledge exchange was facilitated.

Workforce efficiency increase: Based on the results, a road map to roll-out was executed for an agreed optimization target. TTE has further developed a custom-built web-based IT solution, through which the client firm can easily perform benchmarking and track its performance improvements over time to achieve operational excellence.

The project delivered impact across a number of areas:

1. Transparency was created and exchange about best practices across the network was fostered
2. Workforce efficiency was increased both in the short term as an immediate measure as well as in the context of continuous improvement
3. Costs were reduced, resulting in 10 m euro run-rate savings, with an implementation ramp-up over the course of three years