Rapid growth had created problems with processes, procedures, management control system and KPIs. Mantec helped with this and improvements gave savings of appr. EUR 1.3 million.
Background
The company is the leading general equipment rental company in the Nordic countries and in Central and Eastern Europe. A major part of its customer base is within the construction sector, but it also includes installation companies, industrial plants, shipyards, and national and local authorities. The company had experienced a rapid growth in turnover, and consequently increased employee numbers, but it did so without developing processes, procedures, management control systems, or key performance indicators (KPIs). There are approximately 300 employees in the business unit considered.
Implementation
During an initial analysis, Mantec evaluated business practices, carried out statistical and operational studies, and discovered that potentially significant improvements could be reached through:
- reorganising parts of the organisation, with focus on roles and responsibilities;
- reducing lead times and throughput times by improving coordination between departments;
- developing and implementing a management control system, to include KPIs and meetings structure;
- implementing Best Demonstrated Practice (BDP) and Standard Operating Procedures (SOP) in the workshops;
- improving workflow planning and inventory procedures in the workshops;
- improving sales focus, through clarifying roles and responsibilities, and improving the pricing structure and tools for follow up;
- designing team structure and supervisory management training; and
- centralising the coordination of equipment between their different geographical regions, to increase utilisation of specialised equipment.
Results
Successful implementation of the project means that the client is now able to:
- achieve more with fewer employees, as a result of a better workflow planning, procedures, and clearly defined roles and responsibilities in the workshops;
- be clear about which decisions to take, as a result of implementing the new management control system, KPIs and follow-up meetings, all of which helped management to develop a common view upon the business; and
- build on a foundation for a planned future ISO certification, as a result of properly documenting the business processes.
By the end of the project the client was fit for the future, with an improved culture and a more structured approach to business. Overall, savings equated to EUR 1.3 million.
