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Case History

Business acquisition and process assessment

Reorganizing processes and data to increase competitiveness following merger and acquisition.
ottimizzazione processi di qualità, value stream map, M&A, assessment dei processi

BUSINESS CONTEXT

Multinational, 1.8 B€ turnover

IN THIS CASE HISTORY

The company

The company is in the business of providing high-end glass packaging for wine, spirits, food, gourmet and home fragrance. Through a series of very targeted acquisitions, it had grown rapidly to become a multinational company with sales of 1.8 billion, with a strong presence in the EMEA (Europe, Middle East, and Africa) market.

 

The challenge

The integration of different companies within the group, each with its own processes and structures, had brought the entire organization to a level of complexity that was difficult to manage. As new resources were added, knowledge assets were becoming less and less structured and consolidated due to a lack of time and tools to share them. Business processes suffered, leading to planners and staff often floundering on deadlines and projects.
There were gaps in the procedures due to lack of knowledge of all the steps by the technicians resulting in differences in quality

High specialization and technical know-how could not yeld their full potential and it was difficult to evaluate performance, especially when the comparison had to be made between the results of the different entities acquired.
Acquisitions thus risked bringing more costs rather than competitiveness over time.

 

assessment dei processi sfida

 

The solution

The proposal was to map the processes in being and derive unambiguous parameters to evaluate them, and then develop structured improvement plans applicable in the short and medium term. The Value Stream Map is one of the most suitable tools to avoid getting lost in biblical reconstructions, especially when dealing with complex organizations.

The graphical representation of the flow of processes, which affect the products or services you want to analyze or develop, has the advantage of immediately highlighting the strengths and weaknesses, where value is wasted and, to the contrary, concentrated. It is crucial, when it comes to quality, to move from a certification perspective to a value perspective since the former has little impact on production reality and therefore on turnover while the latter really does create a difference.

Alongside flow mapping, team leader training was proposed in order to coordinate individual projects and be immediately operational.

assessment dei processi_soluzione

 

The operational phase

 

Rebuilding and unifying processes following business acquisitions enables increased performance and competitiveness in the shortest possible time.”

 

The first step was to assess the different departments’ awareness of the state of their processes and where they stood in relation to the best companies in the industry in terms of quality. This is a very delicate moment because it can lead to defensive closures, whereas a clear analysis of the current state is the indispensable basis for all subsequent operations.

The second step focused on data collection, as the data were very fragmented and often missing. Therefore, a large part of the consultancy was devoted to identifying and mapping, through the Value Stream Map, the processes of the phases or sectors that had the greatest potential for improvement, so as to make it possible in a very short time lapse to classify projects with specific quality objectives and organized according to a clear list of priorities.

The mapping enabled the construction of common quality indicators to refer to in each plant and for each process.
Finally, metrics were identified, the knowledge of which was useful in monitoring the weakest and lacking points of the organization and assessing the quality of the performances.

 

The results

The application of the method led to a quality improvement plan that was made operational immediately, and the results, in just 4 months, were:

  • 10 international priority projects completed
  • 7 Team Leaders trained on the methodology of conducting improvement projects

Clear and unambiguous metrics were identified and included to evaluate:

  • the cost of non-quality
  • the reduction of production faults

The consequence was a 20 percent improvement in RFT (Right First Time), which is the parameter that assesses the quality of the prototype and therefore of the first production, increasing which results in a significant decrease in costs.

 

A proper mapping of the processes, of clear quality indicators and precise evaluation parameters, makes it possible to develop improvement projects very quickly with real effects on efficiency and cost containment.”

 

Federico Barbic – Partner ŌdeXa

 

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