Vocum — focus on improvement

Manufacturing: steel

Heras

Together with Vocum, Heras optimised production and logistics, where 124 FTEs were active at the start. The target of €1,263,000 in annual savings was achieved after just 20 of the 30 calendar weeks.

Result

€ 1.263.000 besparing (30%) · ROI 3,4:1

The starting situation

We were interested in optimising our production and logistics and felt it was a good idea to work with Vocum as an external partner. At the start of the collaboration with Vocum, 124 FTEs were active in production and logistics.

During an analysis, Vocum established that a potential saving of €1,263,000 was possible within the scope above. This corresponds to a productivity improvement of more than 30%.

The most important changes

Thanks to a number of structural and far-reaching changes, the project team quickly achieved results. We have summarised the most important ones once more:

  • The organisational structure was adjusted so that the right responsibilities lie with the right people. Specifically, the number of management levels went from three to two, new job descriptions were created and all managers had to apply for the position they aspired to. Together with rolling out the project objectives to all departments, this ensured that managers cooperate in a motivated way to achieve results;
  • The administrative tasks were centralised (both literally and figuratively) so that duplication of work is avoided and people can take over tasks from one another. This benefits the continuity of production, as the team leaders can be present on the floor much more;
  • A new communication structure with a new accompanying reporting system was implemented, so that the right information reaches the right person at the right time and corrective action is taken at the right hierarchical level in case of deviations;
  • The work schedules of more than 100 people were aligned;
  • Managers were trained, both in the classroom and on the job, in managing people and in ‘management by objectives’. This enables them to manage, follow up and proactively guide their people better;
  • Staff planning was developed, based on realistic standards and forecast workload, across the five different production departments. As a result, managers plan staff in a very cost-conscious way, which has a direct effect on productivity;
  • The flexibility of the people was also increased. Each employee in production is expected to be able to perform at least two other activities or tasks besides their core skills. Because employees can thus be deployed in multiple places, productivity could be increased. In both production and logistics, it becomes possible to better match available and required capacity.

The result

The points above, together with continuous guidance from the Vocum team, enabled us to achieve the target of €1,263,000 — a 30% productivity increase — on an annual basis after just two thirds of the project (after 20 of the total planned 30 calendar weeks). This corresponds to an ROI of 3.4:1. The agreed minimum guarantee of 1:1 (project costs) was realised from week 8 of the project, which takes 30 calendar weeks in total.

The management's reflection

After an analysis by Vocum, our suspicion was confirmed that we could work much more efficiently in our Production and Logistics departments. Through a thorough project approach and tight management on both Vocum's side and our own, it was possible to demonstrate a strong improvement in this productivity in a short time. Twice a week there was a brief meeting on progress and action points were discussed. This way of working contributed enormously to the speed of the project. We were able, when necessary, to adjust quickly.

We are very pleased with the way Vocum brought the project to a successful conclusion and recommend Vocum to any company that has a change process with measurable results in mind.

At first, our employees expressed disbelief about the feasibility, because in their eyes we were already doing our very best. That last point was true, but we were not using our resources well, which meant many things were not carried out effectively. By naming these improvement points one by one and then tackling them with an action plan, we quickly achieved our objectives.
Dennis J.J. Gouka and Harry J. DoedensGeneral Director and Financial Director, Heras

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