Operational diagnostics

Summary

LCP undertook a comprehensive global analytical review, supported by selected operational reviews based on one Region to validate findings, to isolate the reasons for poor customer service and determine a programme of action to resolve this

Project Background

This Chemicals Manufacturer was struggling with very poor reported Customer service and high Working Capital - the Supply Chain VP was under pressure to quickly identify a course of action that would turn the situation around.

Approach

The Client wanted a very quick study undertaken in order to get some high level learnings in place and galvanise the leadership team into action.
LCP ran a series of activities in parallel
• Deep data trawl through existing SAP system and Data Warehouse - review data quality, cleanse and analyse
• Perform as many end-to-end analytics as possible; reporting results and where the business data was lacking
• Undertake functional reviews, by observation and interview, to provide a commentary on business disciplines, behaviours and capabilities - either to support or challenge the analytical findings
• Run a series of workshops to explore and validate the findings and from which to establish the priorities for action
• Present the Findings to the Leadership Team, complete with recommended action plan

Client Testimonials

LCP deployed a small team of business process experts and an analyst. Working closely with Senior Management and the Regional Operational Managers to help interpret findings, the recommendations were rapidly 'owned' by the business, who proceeded to define the next stage of engagement.

Results and Benefits

For the first time the business had clarity on where performance was fundamentally failing and had many long held 'myths' dispelled. Key results identified were:
• Lack of integrated planning and no central visibility of what the business was committing to
• Poor factory production planning and weak schedule adherence
• High working capital with no business controls in place
• Weak forecasting system and no accountability
• Product Portfolio and Profitability was out of control
• Business data integrity was compromised
• No performance measurement system to hold the business managers, regions or indeed even the Leadership team to account
The findings were accepted in totality and the recommended programme approved for immediate implementation.