As part of a large corporation, the client organization was increasingly less competitive in face of primarily agile, highly efficient small to mid cap competitors in Europe and from Far East. Realtive disadvantages existed with direct hourly rates of dominant cost Centers, with productivity and with value add of indirect corporate business services.
With pragmatic cost structure analysis of direct core cost Centers as well as with value stream analysis of selected orders, within only 4 weeks, dp was able to develop a cost improverment programme in an interactive approach with the client team. Straight-forward acceptance and release of this programme was possible by a balanced distribution of required contributions by all required levers – overhead reduction, structural changes and labour costs – and all stakeholders, including labour unions.
Thus, the hourly rates of the most important cost centers could be reduced by 20%, room for investments and such for job security was enabled, competitiveness re-gained and all the effort was rewarded with new, profitable customer contracts.