KNOWBOT - INNOVATION PORTFOLIO MANAGEMENT
Results and Key Takeaways
In this section we share some of the results achieved at our clients.
Improve Business Development through more effective Portfolio Management
The client is one of the most competent fresh food packaging producers in Europe having a turnover of € 290 million and 13 establishments across Europe. The key challenges facing the client were business development performance and inconsistency between functions and sites. There was a need to refocus activities on high value business projects, duly considering financial implications. The ratio between effort and value delivered was high, as was time-to-market from Idea to Customer Delivery. On understanding the current condition, the EFESO team recognized some key opportunities for improvement and worked with the client to achieve the following results:
Created an Infinite Loop comprising of the portfolio management loop which is connected to the project management loop. Portfolio management includes defining priorities and ensuring capacity rebalancing; while the project management reviews project plans, monitors progress and evaluates results on a continuous basis.
Included a commercial and technical filter for existing projects to build a priority score on Value and Risk levels. This was critical to building capacity and workload rebalancing.
Four drivers were defined for project selection and ranking. These were market risk drivers, technical risk, strategic fit and economic value drivers. Based on the weighted average score of each driver and sub-drivers, the Top Priority Projects were identified.
Optimizing Product Development and Industrialization activities
The client is a global eyewear manufacturer producing over 14 million pairs of spectacles with nearly 1500 new variants every year and having a sales revenue of € 362 million. It has a presence in 127 countries with over 20 licensed and 6 house brands. The client approached EFESO for support in activities concerning product development optimization and industrialization to achieve an additional 9% growth in the new model category as compared to the previous year.
The EFESO team of experts evaluated the current situation and helped the client in mapping the industrialization processes and product development offices. The key efforts during our engagement included:
Conducting Value Stream Mapping to identify and categorize wastes in the industrialization process.
Analysing Value Added (VA) and Non-value added (NVA) activities and identifying improvement opportunities.
Conducting KPI Analysis and propose an improvement implementation plan with estimation of potential savings.
Within two years, the client was able to increase productivity by nearly 50% and achieve a minimum of 20% lead time reduction in the industrialization phase.
In the next KnowBoT we will explore the Real Lean concept in a Laboratory environment and also discuss a unique human dynamics approach that is supporting the operational excellence journey in labs to significantly reduce human errors and increase efficiency.