Case study
Leisure vehicle manufacturer
Innovative approach to operational improvement for a leisure vehicle manufacturer
Our client had developed a leading position in the UK and European market for leisure vehicles. The business had grown aggressively by acquisitions and expansion into Europe, but profitability had fallen. PA Consulting Group was appointed to deliver a rapid operational improvement program to reduce costs and improve productivity. Using a hypothesis based approach, 11 key improvement areas were rapidly identified. Project teams, involving around 10% of the company's employees were set up to deliver these improvements.
Essential elements of the implementation approach included: dedicated project 'team days', selection of the best people to lead improvement teams, and regular involvement and ownership from the board directors.
Solution development focused on emphasizing the business strengths while adding the required process structure. Key business processes were redesigned, business performance indicators were simplified and IT solutions focused on improving and developing existing systems.
The planned business benefits from the project were a 10% saving in operating costs over three years. Substantial savings have already been achieved within the first year. Other benefits to the business included improvements in customer service, reduced lead times and increased data accuracy.
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