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:
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