Electrical ProductsElectronics Company redefines its performance culture after spinoff
Client is a global, diversified electrical products platform.
Client became independent company after being spun out of a billion dollar publicly traded company. Client engaged DB&A because there was a desire to create their own identity by establishing a vibrant, performance based culture.
However, with customer satisfaction at 99%, the challenge of getting the organization to see the need for change would not be easy. Client recognized that one of the challenges would be helping their tenured workforce to understand their role in driving a step change in performance.
DB&A started with a two week analysis in the client’s primary distribution center aimed at identifying opportunities for improvement. DB&A found that while the workforce was committed and working hard, they were often working hard on tasks that did not align with team and corporate goals, but did not even know it. There were several contributing factors including unclear roles and responsibilities, absence of metrics at the lowest level and in some instances, ineffective supervision. In addition, poor planning and scheduling of work led to periods of significant inefficiency.
All of this was masked to the Client by their ability to haphazardly muscle work through when needed to achieve near perfect customer service.
Senior management engaged DB&A in a six-month effort to drive the desired cultural change. DB&A had to work simultaneously with both senior managers and frontline supervisors in order to achieve the necessary improvements, as well as introduce new management tools for driving performance. DB&A spent significant time working one-on-one with supervisors and managers in their work environment to coach, train and develop them individually.
DB&A created a structure and a uniform process across all areas that included customized tools focused on the five management system elements of Forecasting, Planning, Assigning/ Following-up, Reporting, and Evaluating. DB&A also provided managerial workshop training that tied the desired management behaviors to the tools developed.
Through the appropriate use of the tools, supervisors are now able to properly plan for predictability by evaluating planned volumes and the number of hours required to complete work. These actions result in better business decisions overall. Operational results include:
- Increased pieces picked per labor hour by 27%
- Improved inventory moves per labor hour by 28%
- Reduced overall labor cost in area by 32%
Collaboration between departments has led to greatly improved planning and scheduling.
Through coaching and training, DB&A increased the capacity to manage beyond the project.
DB&A facilitated an overall culture shift that has the ability to support continual and long-lasting performance improvements.
DB&A achieved 110% of our guaranteed savings plan with $1.1 million in actual annualized savings.
“We could not believe how much opportunity for improvement DB&A found in one of our best performing operations.”
“The step change in our performance culture has really helped us with our goal of creating our own identity as an independent company.”
“The DB&A effort was a game changer for us.”