intro to world competition consultants

29
World Competition Consultants 523 W. Lamar Alexander Parkway Suite 12 Maryville, TN 37801 (865) 681-0029 [email protected] www.wcconsultants.com World Competition Consultants Better, Faster, Cheaper 2 Would you be excited to … Reduce your Operational Costs by 13-40% Increase your Productivity between 20-100% Reduce Inventory by 25-73% Reduce Setup Times by 50-97% Reduce your Scrap by 30-50% Improve Space Utilization by 30-50% Obtain Quality Yield Improvements of 50-90% Improve your Order-to-Delivery Lead-Time of 30-87% Customer Service (On-Time-In-Full) Improved by 20-42% Improve your Cash Flow 30-70% Reduce your Number of Suppliers by as much as 77% Reduce your Suppliers’ Lead-Time by as much as 83%, and …. Get a Return-on-Investment in WCC’s Consultancy Fees >300% in the first year World Competition Consultants (WCC) has proven expertise in implementing operational and/or transactional improvements and achieving dramatic results as shown above.

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World Competition Consultants

523 W. Lamar Alexander Parkway

Suite 12

Maryville, TN 37801

(865) 681-0029

[email protected]

www.wcconsultants.com

World Competition Consultants

Better, Faster, Cheaper

2

Would you be excited to …• Reduce your Operational Costs by 13-40%

• Increase your Productivity between 20-100%

• Reduce Inventory by 25-73%

• Reduce Setup Times by 50-97%

• Reduce your Scrap by 30-50%

• Improve Space Utilization by 30-50%

• Obtain Quality Yield Improvements of 50-90%

• Improve your Order-to-Delivery Lead-Time of 30-87%

• Customer Service (On-Time-In-Full) Improved by 20-42%

• Improve your Cash Flow 30-70%

• Reduce your Number of Suppliers by as much as 77%

• Reduce your Suppliers’ Lead-Time by as much as 83%, and ….

• Get a Return-on-Investment in WCC’s Consultancy Fees >300% in the first year

World Competition Consultants (WCC) has proven expertise in

implementing operational and/or transactional improvements

and achieving dramatic results as shown above.

3

World Competition Consultants (WCC)

World Competition Consultants (WCC) will help transform your business into a market

leader by assessing your operational & transactional inefficiencies and closing the gap

to achieving a world-class performance level. WCC is comprised of an international

group of successful seasoned hands-on business practitioners with an extensive &

diversified portfolio of business successes across a vast array of industries. We

differentiate ourselves as consultants as “we have been there, done that and we were

successful”. Our solutions are based on proven-methodologies, not theory. And we’ll

guarantee you, an attractive return on your investment in WCC’s services.

Our business-model allows us to quickly scale our services to meet your requirements.

Our leadership team utilizes industry-practitioners who are Subject-Matter-Experts

(SMEs) in their field. Our resource-pool is boundless. We are not limited to a small-pool

of “traditional” consultants as we have access to some of the best SMEs worldwide.

Our Capabilities

4

5

• Lean Transformations : Eliminating “Waste” from your Operational & Transactional processes.

Achieving cost reductions throughout the end-to-end supply chain, external & internal.

• Business Turnaround : Identifying & implementing the successful incremental steps to correct

your deteriorating financial performance, We have the people to assist you, or take total

control. We can make you competitive with low-cost manufacturing countries.

• Business Transformation : Making fundamental, profound changes in how your business is

conducted in order to help cope with a shift in external and/or internal drivers; e.g. eroding

profit margins, increasing cost competitiveness, changing customer expectations, challenging

market landscape, global politics & economics, etc.

• Factory Moves or Consolidations : Preparation & Management of your factory move or

consolidation. Outsourcing, offshoring and onshoring analysis, planning & execution. We have

never failed a client on making a seamless move while taking care of their customers.

• Operational Due Diligence : assessment for a potential merger or acquisition. After our unique

operational due diligence, our clients go into negotiations knowing more about the seller's

company than the seller does.

And in most cases, we will guarantee a ROI of 300% of our services.

Our Capabilities / What We Do

6

Our Value Proposition

Offerings Benefits Differentiators Proof

Lean

Transformations

• Reduce inventory

• Shorten lead-time

• Increase productivity

• Portfolio

Management

• Total Cost of

Ownership

• Business Process

Management

• Improved Financial

Performance

• End-to-End Supply chain

Value stream Mapping

• Routing-By-Walking

Around

• Pull & Replenishment vs.

Push & Forecast

• End-to-End Supply Chain

Strategy & Optimization

• Procurement & Supply

Management Strategies

• Triple-Play Analysis

• Maturity Profiling

• Activity Based Costing

• Product Costing

Framework

• Productivity increase of 20-

40%

• Increase inventory turns to

20-50

• Reduce set-up times by 50-

75%

• Scrap reductions of 30-50%

• Space-used reductions of

30-50%

• Quality improvement of 50-

90%

• Order-to-delivery lead time

improvement of 50-80%

• Improve cash flow 50-70%

ROI

of

300%

Business

Turnaround

Business

Transformations

• Fundamental Changes

in Business Processes

• It's thinking--and acting--in

a new way

Factory Moves or

Consolidations

• Preparation &

Management

• Outsourcing, offshoring

and onshoring analysis,

planning & execution

• Successful seamless moves while

taking care of your customers

Operational Due

Diligence

• Assessment for a

potential merger or

acquisition

• Structured checklist and

approach • Go into negotiations knowing more

about the seller's company than the

seller does.

7

Change Orientation

Status

Quo

Change Initiatives

Radical

$$Business

Transformation

Business

TurnaroundLean

Transformation

As the pendulum

moves towards

Radical, the higher

the rewards ($).

Our Approach

8

9

Mobilization Visioning

Assessment

External• Customers• Competitors• Supply Landscape• Regulatory

Internal• Value Stream

Analysis• Waste Assessment

(non-value added activities)

• Operational Effectiveness

• Information Technology Infrastructure

ValidationGapAnalysis

‘Quick Wins’- Implement high benefit process improvements

New Ways of Working

Best Practice

Databases

Best Practice

Databases

We create a gap analysis of your current ways-of-working versus industry best-

practices utilizing our data-driven, fact-based assessment approach ..…

Transformation Approach

We will address your “Pain-Points”, e.g. • Rising Operational Costs / Shrinking Margins

• Rising Customer Expectations

• Customer Service Challenges (On-Time-in-Full)

• Declining Quality / Increasing Cost-of-QualityValue Stream Map-based

Lean Tools & Methodologies

10

We will look at your overall Supply Chain but going into greater detail on one or

two product lines.• Understand current business objectives,

strategy, key performance indicators,

performance trends, and ongoing

initiatives

• Develop total cost model, including

headcount by function to operator level;

identify significant overhead costs and

their drivers

• Understand product structure, part and

process variety, and level of

commonality

• ABC classification of product mix by

sales revenue

• Identify one or two representative

products for detailed Value Stream

analysis

• Understand actual costing of

representative products

Review entire supply chain at an overview level

Overview

Specific

Level of Detail

Scope

Focus detailed analysis on a

limited number of representative

products

We drill down on one or two products, lines, etc.

Assessment Approach

11

6-Step Approach

Our 6-Step Approach to achieving Operational Excellence …1. Mobilization: Mobilize team and resources as needed.

2. Assessment: After our initial discussion, we’ll establish the “scope” for the Assessment. An

Assessment often includes External & Internal elements depending on YOUR pain-points!a. The basis for our Assessment will be the creation of a Value Stream Map. A VSM is a simple diagram of every

step involved in the material, product and information flows needed to bring a product from order to

delivery (end-to-end supply chain). A current-state map follows a product’s path from order to delivery to

determine the current conditions, and will be the baseline for improvement.

b. We’ll use a full array of Lean Six Sigma (LSS) tools & methodologies to fully assess the current conditions, i.e.

current ways-of-working. A sample of LSS tools & methodologies include Value Stream Analysis, Waste

Assessment (8 deadly Lean wastes), Inventory analysis (raw, work-in-process & finished goods), Stratification

(A-B-C, etc.), Process Lead-Time analysis, Performance Indicators analysis, etc.

c. The assessment can be extended to include your Customers with a Voice-of-Customer scheme and the

creation of a House of Quality (a.k.a. Quality Functional Deployment).

3. Gap Analysis: Utilizing out knowledge and database of industry best practices plus Lean Concepts;

we’ll establish a Gap Analysis of “current ways-of-working” verses best-practices and “operational

excellence”. Operational Excellence is a philosophy of the workplace where problem-solving,

teamwork, and leadership results in the ongoing improvement in an organization. The process

involves focusing on the customers' needs, keeping the employees positive and empowered, and

continually improving the current activities in the workplace.

a. Where applicable, we’ll benchmark your operations verses your competitors and/or industry-leaders.

12

6-Step Approach continued

Our 6-Step Approach to achieving Operational Excellence …4. Visioning: Taking all the information obtained during the assessment and the gap-analysis steps

will be used to create a Vision, i.e. a Future State VSM. A future state map deploys the

opportunities for improvement identified in the current-state map to achieve a higher level of

performance. During visioning, we’ll start to quantify the value of the vision.

4. Many Lean concepts will be under consideration at this step such as Waste Elimination, Production Cells,

Pull / Replenishment, One-Piece/Small-Lot Flow, Inventory Rationalization, Single Minute Exchange Die,

Time Traps & Line Balancing, Manufacturing Differentiation, Total Productive Maintenance, and

Standardized Work.

5. Validation: Once a Future State VSM has been created, we must validate the benefits to be

obtained. The most common validation method is to “Pilot” the proposed changes in a controlled

working environment.

4. Additional validation methods include Design of Experiment (DoE), 3P (Production Preparation Process),

etc.

6. New Ways-of-Working: The final step is to develop and execute a plan for replication &

sustainment of the “new ways-of-working”.

An Alternative Approach:

Build your Staff’s Skillset

whilst

Improving Operational &

Transactional Performance

13

14

Program Benefits:

• Development of Staff / Skill Retention

• Base for a Continuous Improvement Culture

• Improved Operational & Transactional Performance

• Immediate ROI on Consulting Services

We can train your staff on Lean Six Sigma (LSS) tools & methodologies, and

concurrently support them on improvement projects; and culminate the program by

certifying them as a LSS Green or Black Belt (dependent on program length).

Project Benefits (examples)

• Reduce Operating Costs

• Reduced Process Lead-

Times

• Increase Revenue

• Improve Administrative

Efficiency & Productivity

• Improve Operational

Efficiency & Productivity

Lean Six

Sigma

Training

Improvement

Projects

Coaching & Mentoring

$$$

Develop In-House Skills w/ Immediate ROI

15

LSS Green / Black Belt Project Approach

Green Belt Projects

Value Stream

Mapping (VSM)

Session

Brainstorm

Improvement

Opportunities

Validate VSM /

Gemba

VSM

Future State

Prioritize /

Benefit & Effort

Value Stream Mapping Analysis

Green & Black Belt Training

Black Belt Projects

Green & Black Belt

Projects Launch

Operational

Excellence*

Foundation

Kaizen / Problem solving Training

5S / Workplace Management

Standard Work Development

*Structured continuous improvement.

Training & Coaching

Companies:

• Global 100, 500 & 1000

• US Fortune 500

• Asian based

manufacturers; public

& private

• Global service

companies

Industries:

• Semiconductors

• Electronics /

Computers

• Consumer Products

• Fast Moving Consumer

Goods

• Medical Device

• Oil & Gas

• Distribution

• Banking

• Heavy Industries /

Engineer0-to-Order

• Lean Workshops : Introduce practical application of Lean concepts

‒ >10 workshops with more than 500 participants

• Kaizen Leadership Training : practical application of Lean Six Sigma

concepts

‒ >5 workshops with more than 150 participants

• Problem Solving : effective use of PDCA and analytical tools

‒ >10 workshops with more than 200 participants

• Supply Chain Best Practice Workshops : enterprise Lean & business

process reengineering

‒ >5 workshops with more than 125 participants

• Value Stream Mapping (VSM) sessions:: define Current State,

identify Opportunities & map Future State

‒ >100 VSM sessions with more than 1,000 participants

• Lean Six Sigma (LSS) training & certification

‒ White & Yellow LSS Belts : >500 trained

‒ Green Belts : >100 trained, coached & certified

‒ Black Belts : 14 trained, coached & certified

• Coached / Championed >50 major DMAIC projects

• Coached / Championed >500 rapid Kaizens projects

• Facilitated >50 Work Outs session to identify process simplification &

cost savings opportunities

“After a 2-day workshop with Mr Raymond; our team was able to reduce the lead-time of a key product by 50%.

Training was practical & fun. Highly recommend to any company needing rapid change.”

- Director of Operations, a Malaysian manufacturer

LSS Training & Coaching: Statement of Experience

One of Our Specialties:

Business Transformation

through

Lean Transformation

17

Lean Principles

18

These principles are fundamental to cultivating a Lean culture in

any industry …

1. Value - specify what creates value from the customer’s perspective

− Specify what does or does not create value from the customer’s perspective

2. The value stream – identify all the steps along the process chain

− Identify all the steps necessary to design, order & produce the product across the

whole value stream to highlight non-value-adding waste

3. Flow - make the value process flow

− Make those actions that create value flow without interruption, detours, backflows,

waiting or scrap.

4. Pull - make only what is needed by the customer (short term response to the

customer’s rate of demand).

− Only make what is pulled by the customer.

5. Perfection - strive for perfection by continually attempting to produce exactly

what the customer wants

− Strive for perfection by continually removing successive layers of waste as they are

uncovered

19

T R I M W O O D

1

5

37

8 2

6 4

WASTEOVER-PRODUCTION

Producing more than what is

immediately needed

RESOURCES

Underutilized resources; e.g.

people, space, etc.

OVER-PROCESSING

Inappropriate or

excessively processing

DEFECTS

Doing the same job/task more

than once

INVENTORYMaterial / product/

information waiting to

be processed

MOTIONExcessive

or

needless

movement

of people

TRANSPORTATIONMoving material/product

from one place to another

Delays caused by process-bottlenecks,

shortages, approvals, downtime, etc. WAIT

Lean Transformation: Identifying Waste

Lean Transformation : Lean Building Blocks

Continuous Elimination of Waste (Kaizens)

Standards CultureFlow

The Gemba Walk (Go See)

Workplace Organization

Teams / Engagement

Training & Multi-Skilling

Job Rotation

Standardized Work

Error Proofing

Total Productive Maintenance

Visual Workplace

Standardized Material Mgmt.

Rate/ Leveled Production

Set Up Reduction

Communication & Feedback

Pull/Kanban

Production Cells

Takt Time

Quality at the Source

Flexible CapacitySmall Batch / Lot

Sizes

20

Synchronized Inputs & Outputs

Uninterrupted Flow (product, material &

information)

Safety

Lean Transformation : Value Stream Mapping

21

20,000 pcs/mo

Module=100

SUPPLIER

DistributionAssembly 2Assembly 1Machine 1 Machine 2

•Raw castings

•Daily schedule

•Machine 1d material

•Daily schedule•Forgings, bolts, nuts, washers

• Daily schedule

•Assy 1, o-ring, bearing, snap ring

• Daily schedule

Receiving/Warehouse

2/Day

1/Week

Customer

1000 pcs 5000 pcs 100 pcs 200 pcs

I

I I I I

•Assy 2

•Daily schedule

MACHINING & ASSEMBLY

Forecast, 6 Month, Fax

Order, Weekly (5-day), Fax

MR

P

Forecast, 90/60/30 Day, Fax

Order, Daily, Fax

CUSTOMERSERVICE

MR

P

PURCHASING

MR

P

100 pcs

I

100 pcs

I

Work Orders, Daily Release, Paper

100 pcs

1, 1x8 hr shift

1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift 1, 1x8 hr shift

x= X-Purc Parts

C/O = 2 Min

Uptime 95%

Batch Size 500

P/T = 80 Sec

y= Raw Casting

x=X-Raw Casting

C-Daily schedule

C/O = 30 Min

Uptime 95%

Batch Size 100

P/T = 30 Sec

x=X-Machine 1 material

C-Daily schedule

C/O = 60 Min

Uptime 80%

Batch Size 100

P/T = 45 Sec

x=X-Machined part, bolts, nuts,

washer, C-Daily schedule

C/O = 5 Min

Uptime 95%

Batch Size 100

P/T = 60 Sec

x=X-Assy 1, O-ring, bearing,

snap ring, C-Daily schedule

C/O = 10 Min

Uptime 95%

Batch Size 100

P/T = 50 Sec

x=X-Assy 2, X-Packaging

C-Daily schedule

C/O = 10 Min

Uptime 95%

Batch Size 100

P/T = 90 Sec

y=machined part y=machined part y=assy 1 y=assy 2 y=shipped order

20 sec 50 sec35 sec 40 sec

23.7 hours 92.1 hours 1.6 hours

P/T= 145 sec

3 hours PLT=124 hrs80 sec + 1.8 hours30 sec 60 sec45 sec 50 sec 90 sec

Value Steam Mapping is a great tool for identifying Waste in your Current

State, and projecting what your Future State should be.

Lean Transformation : Approach

22

Value Stream Mapping will drive key Lean

initiatives. Benefit & Effort

Prioritization

Value Stream Project Plan

20,000 pcs/mo

Module=100

SUPPLIER

DistributionAssembly 2Assembly 1Machine 1 Machine 2

•Raw castings

•Daily schedule

•Machine 1dmaterial

•Daily schedule

•Forgings, bolts, nuts, washers

• Daily schedule

•Assy 1, o-ring, bearing, snap ring

• Daily schedule

Receiving/Warehouse

2/ D a y

1/ W ee k

Customer

100

0

pcs

500

0

pcs

100

pcs200

pcs

I

I I I I

•Assy 2

•Daily schedule

MACHINING & ASSEMBLY

Forecast, 6 Month, Fax

Order, Weekly (5-day), Fax M

R

P

Forecast, 90/60/30 Day, Fax

Order, Daily, Fax

CUSTOMERSERVICE

M

R

P

PURCHASING

M

R

P

100

pcs

I

100

pcs

I

Work Orders, Daily Release, Paper

100 pcs

1, 1x8 hr

shift

1, 1x8 hr

shift

1, 1x8 hr

shift

1, 1x8 hr

shift

1, 1x8 hr

shift1, 1x8 hr

shift

x= X-Purc Parts

C/O = 2 MinUptime 95%

Batch Size 500

P/T = 80 Sec

y= Raw Casting

x=X-Raw Casting

C-Daily schedule

C/O = 30 MinUptime 95%

Batch Size 100

P/T = 30 Sec

x=X-Machine 1 material

C-Daily schedule

C/O = 60 MinUptime 80%

Batch Size 100

P/T = 45 Sec

x=X-Machined part, bolts, nuts,

washer, C-Daily schedule

C/O = 5 MinUptime 95%

Batch Size 100

P/T = 60 Sec

x=X-Assy 1, O-ring, bearing,

snap ring, C-Daily schedule

C/O = 10 MinUptime 95%

Batch Size 100

P/T = 50 Sec

x=X-Assy 2, X-Packaging

C-Daily schedule

C/O = 10 MinUptime 95%

Batch Size 100

P/T = 90 Sec

y=machined part y=machined part y=assy 1 y=assy 2 y=shipped order

20

sec50

sec35

sec

40

sec

23.7

hours

92.1

hours

1.6

hours P/T= 145

sec

3

hou

rs

PLT=124

hrs

80 sec + 1.8

hours30

sec60

sec45

sec

50

sec

90

sec

Business Turnaround: Lean Transformation

Company:

A Global 500 Japanese

manufacturer of

household appliances in

Thailand

What We Did:

• Process flow modelling : identify & minimize non-value added activities

• Process control and quality improvement : attack the root cause and establish

process control to prevent defects at source.

• Machine setup time improvement : utilized SMED

• Manufacturing run strategy : categorize product group to build daily or weekly

and optimise machine conversion

• Bottleneck optimization: identified bottleneck operation and optimize loading

sequencing of products to meet demand

• Capacity and line balancing & resource allocation: to allocate machine and

balance operational capacity per demand

• Kanban implementation : synchronise production to actual demand

ChallengeRecognizing the major

change imperative driving

most manufacturing

industries today – Global

price reduction due to

cost competition

particularly from China

manufacturing

Solution:The company needed a

business Turnaround to

reduce operating cost by

improving operational

productivity and overall

facility efficiency

Results• Set-up Time Reductions of 97% in the painting dept. & 50% in metal fabrication

& plastic molding

• Improved Labor cost per set by 20%

• Increased production capacity by 60%

• Reduced overtime by US$107k

• Reduced 59% of metal WIP inventory

• Reduced 51% of Plastics WIP inventory

• Reduced defects by 2 ~ 8%

• Successfully implemented TPM

Lean Transformation : Statement of Experience (selective example)

Business Turnaround : Lean Transformation

Company:

An American Fortune 500

company’s semiconductor

assembly & test facilities in

Malaysia and Singapore

What We Did (Major Initiatives):• Process flow remodel : identify non-value added

activities and minimise them

• Process control and quality improvement : get to

the root cause and establish control to prevent

defects

• Machine setup reprocess : to parallelise activities

which can be undertaken while machines are

running, and so increase production flexibility

• Run strategy : to categorise product group

building daily and weekly to optimise machine

conversion

• Capacity , line balancing & resource allocation: to

allocate machine and balance operational

capacity per demand

• Cell configuration and re-layout : to simplify

product movement and minimise material

handling

• Kanban implementation : to control inventory and

to synchronise production to actual demand

• Traceability and Admin support: to minimise non

value added admin support

Challenge

We needed to cut the total

production cycle-time by

50%.

Results

• Reduce the total production’s cycle-time from 10-days to 2-days

• Reduced the finished goods inventory from 30-days to 5-days

• Achieve annualized savings of US$28-million

Supply Chain Excellence : Statement of Experience (selective example)

Business Turnaround : Lean Transformation

Company:

A Global 100

electronics consumer

goods manufacturing

facility in Malaysia.

Main product

manufactured: TV

components,

fax/telephone units

and misc. audio &

visual components

What We Did (Major Initiatives):

• Redefined the business model and simplify different business processes for each factory into one generic flow

• Redesigned planning to support daily make-to-order with material replenished to point of use by Visual Control System

• Analyzed current production processes and restructured production around product family based cells; eliminated delay and storage within production cycle and identified potential set-up time reduction

• Reorganized purchasing departments in different factory into a supply management team; designed supply strategies for each commodity group

• Reducing number of suppliers and negotiated partnership with strategic suppliers

• Ensured the redesigns are supported by their implementing ERP system Challenge

To develop optimal

New Product

Introduction, Order

Fulfillment and Supply

Management

processes, including

defined process

strategy, structure,

activities, resources

and infrastructure

ResultsOrder Fulfillment:• Indirect Labor (FTE) Reduction• Indirect Labor Cost Reduction:• Cycle Time Reduction:• Finished Goods Reduction:• WIP Reduction:Supply Management:• Raw Material Reduction:• Long Lead Time Item Purchase Lead Time

Reduction:

24%

24%

60%

35%

63%

25%

97%

Supply Chain Excellence : Statement of Experience (selective example)

Business Transformation : Lean Manufacturing / Business Process Reengineering

Company:

A Global 100 electronics

consumer goods

manufacturing facility in

Malaysia.

Main product manufactured:

Commercial & Residential Air

Conditioners

What I Did (Major Initiatives):

• Redefined planning strategy to Build To Order (BTO) with a confirmed PO’s., and optimized inventory levels utilizing a statistical-based inventory model

• Introduced Set Up Reduction and material replenishment system using kanban to achieve a more flexible manufacturing set up.

• Redefined and implemented Quality system into Quality at Source in its entire manufacturing environment and extending to material suppliers.

• Implemented differentiated supply management strategy by commodity

• Integrate design activities with procurement in order to streamline parts

Challenge

To reduce cost and cycle

time within the

Manufacturing, Procurement

and Planning areas, through

the introduction of best

practice, the standardization

of processes, efficiency

improvements and a

reduction in inventory levels

thru application of industry

best practices.

Results

• Order Fulfillment Cycle Time Reduction:

• Set up Time Reduction

• Incoming Inspection Reduction :

• Process Inspection Reduction :

• Inventory Reduction :

• Procurement headcount Reduction:

53%

73%

53%

40%

70%

40%

Lean Transformation : Statement of Experience (selective example)

Business Turnaround

Company:

A Malaysian medical device

manufacturer

High volume – high mix

manufacturing

What We Did:

• Value Stream Mapping of all manufacturing facilities’ end-to-

end supply chain

• Value Stream Mapping of all key transactional & administrative

processes

• Activity-based analysis of all headcount

• Centralized planning & procurement

• Coached rapid-change Kaizens to eliminate process waste

• Implemented “supermarkets” to reduce WIP and Finished

Goods Inventory

Challenges

• Margins have been eroded to

<3% (competitors achieving

15~35%)

• Negative cash flow requiring

additional cash

advancements from owner.

Cash flow exceeded 180-days

• Supplier refusing to deliver

critical material due to lack

of payment

• Inventory levels exceeded

90-days for low-cost

commodity products

Results

• Reduce average product lead-time

• Reduced work-in-process inventory

• Reduced raw material inventory

• Reduced the number of Purchase Orders

• Reduced production headcount

• Cash flow improved

• Increased margins to …………………

70%

65%

66%

80%

20%

50%

>10%

Lean Transformation : Statement of Experience (selective example)

Another of Our Specialties:

Business Transformation

through

Supply Chain Excellence

28

29

Business Transformation

Example: Trends in Consumer Business forcing Supply Chain Management improvements

External industry trends continue to drive the need for changes

Supply Chain Excellence

30

Business TransformationThe Supply Chain Management framework …

… we’ll utilize this framework in association with Value Stream Mapping to identify improvement opportunities within your end-to-end supply chain.

Business Turnaround : Lean Transformation

Company:

Fortune 1000 manufacturer

of Magnetic Disk Drive

Heads – Semiconductor

Technology with

Wafer-die assembly -

Thailand &

Final assembly & test –

Philippines

What I Did:

• Had three teams; US (wafer fab), Thailand & the Philippines;

working concurrently to reduce the total order fulfilment time

• Implemented cellular manufacturing in Thailand & the Philippines

• Implemented Pull / Replenishment principles at all phases of the

internal & external supply chain

Challenge

Customer was unsatisfied

with product lead-time, and

customer wanted supplier

managed replenishment of

inventory . Customer wanted

to reduce their stock from 1-

month to 3-days.

Supply Chain Excellence : Statement of Experience (selective example)

Supply Chain Optimization – Warehousing & Transportation

32

Client: Fortune Global 200 Fast Moving

Consumer Goods manufacturer in

Indonesia

Objective: Optimize inventory levels

whilst minimizing transportation and

improving Customer Service from 80% to

90+%

Challenges:

• Indonesia ; an archipelago of 17,000

islands

• Inventory was stored as Finished

Goods at the Factory, Central

Distribution Centers (2) & Regional

Depots (10) to service 20+ sales

offices

• Inventory & transportation costs had

to be optimized for over 20,000 Stock-

Keeping-Units (SKUs)

• Need a Manufacturing Run Strategy:

for each SKU

Solution:

• Developed an Excel-based “Dynamic Inventory Model”

was developed to analyze all possible scenarios to

optimize the overall supply chain.

• Manufacturing Run Strategy: Weekly, Bi-Weekly or

Monthly production runs had to be established for

each SKU

Results:

• Customer Service raised from 80% to 92%.

• Inventory reduced by 45%

• Transportation costs reduced by 30%

Supply Chain Excellence : Statement of Experience (selective example)

Supply Chain Optimization – Regional Strategy Development

33

Supply Chain Excellence : Statement of Experience (selective example)

Global Order Fulfillment Process Lead-time Reduction

Company:

An US Fortune 25 company’s

largest manufacturing facility in

Thailand. Manufacturer of

medical devices and a

healthcare service provider.

What We Did:

• In collaboration with the Customer, we conducted Value

Stream Mapping (VSM) workshops in Europe & Asia. (1)

Establishing the current state VSM as our baseline and then (2)

developing a future state VSM.

• After creating a consensus future-state VSM; a fully detailed

implementation plan was launched

Results

• End-to-end order fulfillment lead-time was reduced by 68%, i.e.

from 128-days to 87-days

• “Frozen” order period was reduced from 1-month to 1-week.

• Customer’s finished good inventory was reduced by ~60%

without any increase in inventory on the supply-side or

manufacturing site

• Improved manufacturing process lead-times and added flexible

manufacturing capacity

• Achieved & maintain a customer service level (on-time-in-full)

of >95%

Challenges

• Their major customer (40%

of revenue), an European

reseller/healthcare service

company; wanted to reduce

their overall order fulfillment

lead-time, reduce the frozen

order period and reduce

their finished goods

inventory

Supply Chain Excellence : Statement of Experience (selective example)

Optimization of a Fragmented Supply Chain

35

Supply Chain Excellence : Statement of Experience (selective example)

World Competition Consultants

36

37

Why World Competition Consultants

Get things done� Focused resources

� Specialist expertise

� Project and change

management

Breakthrough thinking�External perspective

�Innovation based onglobal exposure

�Ability to challengeaccepted wisdom

Credibility to gain commitment�Independent and objective

�Transcend internal politics

�Experience: “Been there, Done that!”

Our consultants are experienced industry

professionals who provide leading edge

thinking and practical skills.

Access to global database of

best practices ensures that our

recommendations are state of

the art.

We have a toolkit of proven methodologies, including

project and change management, which we use to guide

implementations and minimize risk.

Because we define success

by quantitative

performance measures,

clients realize a return

on their investment in

consulting fees.

Investment in Consultancy Fees ….

… and we’ll guarantee a ROI of 300% within the first 12-months 37

38

Global Presence

North America

Over 300 consultants

available in the United

States and Canada

Asia

Over 25 consultants in

China, India, Singapore,

Indonesia, Thailand, the

Philippines, Papua New

Guinean, Malaysia and

Israel

Africa

Nigeria.

Europe

And we recently

expanded our business

to Western Europe

39

Roger G. Lewandowski

For much more detail see our website:

http://www.wcconsultants.com/

Chief Executive Officer

� A former president of all Carrier Canada operations

� President of Carrier Air Conditioning’s largest division

Residential, Heating and Cooling. (One billion dollars

in sales.)

� Experienced turnaround specialist

� Author of three books

� Member of the National Turnaround Association

� Thirty-five years of experience in management

� Graduate of General Motors Institute in Industrial

Engineering.

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Raymond KellyPresident of International Operations / US West (& select other states)

� Internationally known Supply Chain Management consultant; an expert in supply chain optimization

� 37-years of experience including over 25-years experience deploying Lean Six Sigma concepts, tools and methodologies

� Certified Lean Sensei & Lean Six Sigma Master Black Belt

� Held numerous Senior Management positions for a Global Fortune 500 telecommunications manufacturer including expatriate positions in China, Malaysia and the United Kingdom.

� International consultancy experience with industry leaders; Deloitte Consulting, PricewaterhouseCoopers and Coopers & Lybrand

� Experience working with over 50 clients in 23 countries across a diverse range of industries

� Excellent trainer in Lean Six Sigma and Supply Chain / Operational Best Practices. Over 1,000 participants trained worldwide.

� Graduate from North Carolina State University with a Bachelor of Science in Engineering

41

Partial list of WCC’s ClientsAlliance Laundry Systems

(Speed Queen)

Amana Heating & Air

Conditioning

Arnold Air Force Base

Carrier Corporation Mexico

Carrier Corporation U.S.A.

Coldmatic

Coldstream

Clark Door

The Daily Times

DESA International

Frymaster (Manitowoc

Foodservice Division)

Heatcraft, Inc.

iDL Merchandising Solutions

IdleAire Technologies Corp.

IMO Pump

International Comfort

Products

John Deere Corp.

K-25 in Oak Ridge (East

Tennessee Technology Park)

Krack Corporation

Kysor Warren

Lennox International

Manitowoc Ice Division

Manitowoc Crane

GroupMatthews Industries

(Decatur, AL)

Matthews International

(Pittsburgh, PA)

MSI Mold Builders

NesbittAire Inc.

Norwood Promotional

Products

Remington Arms Company

Snap-On Tools

Tindall

Tyler Refrigeration

Wabash Engineering Corp.

York Air Conditioning

The York Group

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Testimonials"I would like to thank you and your team for assisting in the turnaround of Inter-City Products.

The work done in the areas of...

— quality and systems

— value engineering

— indirect labor analysis

— general manufacturing management

...have proven to be effective in help us achieve our goals. I can point to savings and

improvements that will add at least $5 million to our bottom line."

- W. Michael Clevy, President and CEO of Inter-City Products, Heating and Air Conditioning

“WCC came in, worked with people, and turned the place around. WCC was especially skilled at

working with and developing the plant personnel. Both plants intend to bring WCC back in for

further work. WCC is bringing out the best in our people. I am sold on WCC."

- L. Henderson Feagin, President and General Manager of Hussman/Krack (A Whitman Company)

“WCC was there when my team first set an all-time record on R.O.S. and R.O.A. measurements.

WCC, with all their talents and backgrounds, have been invaluable to myself and my team in all

phases of manufacturing, marketing and management."

- Dr. Roger A. Duarte, President of Carrier Mexico

Raymond Kelly’s

Additional Statements of

Experience (selective examples)

43

Partial List of Clients & Industries

44

Clients’ Industries:

• Semiconductor

• Electronics / High-Tech

• Automotive

• Fast Moving Consumer Goods /

Consumer Packaged Goods

• Medical Devices

• Pharmaceuticals

• Consumer Goods

• General Manufacturing

• Oil & Gas

• Government

• Banking

• Logistics & Distribution

• Heavy Industry / Design-to-

Order

• Research & Development

• Telecommunications

• Advocacy Association

• Venture Capitalists

Lean Transformation: Maximize Revenues

Company

Global 10, Big 4 Oil & Gas

company’s Upstream

operations in Brunei

What I Did:

• Facilitated Value Stream Mapping workshops to identify waste

within their processes and identify opportunities for improvement.

• Trained & coached staff in the concepts & principles of Lean

• Facilitated Kaizen & Work-Outs to identify and implement rapid

changes

Challenge

With oil prices at an all time

high, the company wanted

to reduce the lead-time from

a well was drilled until first

oil was pumped. Additional,

they wanted to increase

overall productivity.

Results

• Reduced the lead-time from Well Completion-to-First Oil from 69-

days to 3-days

‒ Implemented critical material supermarket

‒ Implemented “kits” of material needed offshore and process

to replenish “kits”

‒ Created Standard Work for Well Tie-In staff

• Reduced total inventory levels by 50%

• Developed & implemented a Staged-gate process for new Well

designs.

• Achieved US$40M in advanced revenue & operating cost reduction

“Raymond Kelly was contracted for the position of Lean / Six Sigma Process Optimization Practitioner., he

successfully delivered a succession of opportunities across the business. Additionally he coached our staff

in process optimization tools.” - Business Improvement Manager

Lean: Kanban System Implementation

Company;

Siemens, Global 50

Company’ -

Energy Division’s

manufacturing in Wuxi,

China.

Solution

Synchronize production by using a Kanban system to decouple the

unbalanced upstream operations from the bottleneck (fusion furnace)

What I Did:

• Balanced upstream stream to improve product flow

• Created Kanbans in front of each machine

• Implemented Kanban flow racks of WIP

• Scheduled product on via Kanban Board / Production Kanban cards

Challenge

This was a high-mix,

medium-volume machine

job shop. There was a

bottleneck capital-intensive

fusion furnace that needed

to fully be utilized; and that

was dependent on the right

volume of product being

ready at precisely the right

time in the right mix. The

upstream operations, to the

furnace, were precision

machining operations with

limited capacity, so

synchronization was critical.

ResultsThe clients’ words:“Our Production and Logistics Department was supported by Mr. Raymond

Kelly. Thanks to the well-founded knowledge and long-standing practical

experience of Mr Kelly, we succeeded to develop and implement a fine

balanced KANBAN system that corresponds to both the technical conditions and

the logistical needs. The economical benefits and process improvements

expected by us were fully achieved.

- Franz Stevens, General Manager / Shen Xiaowen, Logistic Manager

Siemens Vacuum Interrupters (Wuxi) Ltd

Operational Due Diligency & Business Turnaround

Client:

Malaysian Ministry of

Finance

What We Did:The Ministry of Finance (MoF) was concerned that the financial stability of one

of its large investments in high technology manufacturing, and thereby

established a terms of reference for our project as such:

• Review the current status of corporate governance and risk management of

the company, identify shortcomings and recommend improvements.

• Assess the management of the company in terms of structure, human

resource policies, qualification and competence of incumbents and

recommend improvements.

• Review the procurement, production and selling / marketing processes,

identify inefficiencies and shortcomings, if any, and make recommendations

on improvements.

• Evaluate whether the assets that are in place are over-priced within the

context of the international market., and if so, what were the factors that

resulted in this over-pricing

ChallengeAs the majority shareholder

in a pure-play wafer foundry,

the Ministry of Finance

wanted us to confirm that

the Fab’s business plan was

feasible and assess the risk

of future strategic

investments.

Define a roadmap for

improving operational

productivity and ensure the

company’s competitiveness

What We Did:• We conducted a full operational assessment of the designated

manufacturing entity including sales & customer service operations abroad.

• The final operations assessment document was fully validated by the entire

senior management staff of the manufacturing facility, and improvements

opportunities identified were fully supported by the staff. Benefits from

operational improvement initiatives were estimated to be US$45-million/

annually.

• We presented of our assessment to the Minister of Finance, and a final

summary report was complied by the MoF and presented to the Prime

Minister.

Lean Supply Chain Transformation : Order Fulfilment Process Reengineering

Company:

Global 50 company's

Semiconductor Product

Group

What I Did:

• Integrated a fragmented global supply chain with very long cycle

times:

• value added in3 separate factories

• average cycle time of 258 days

• cumulative yield of 47%

• Implemented iterative planning by functions in weekly buckets

• Addressed to issues of an indecisive, inflexible organization

Results

• We reengineered the Order Fulfillment Process to reduce the

overall lead-time from 258-days to 26-days • Consolidated daily market demand drives Assembly and Test; all

other activities replenish based on pull signal• All demand with lead times exceeding one week s manufactured

to order• Die bank is the only decoupling point, buffering fab cycle time• Products are shipped daily by air freight, 3 days standard anywhere

in the world• Outbound logistics, including vendor managed inventory

warehousing is fully outsourced

Challenge

The client’s goal was to be

recognized as a Global Top

10 supplier of

semiconductor within 5-

years.

Design for Lean Six-Sigma (DFLSS)

Company:

A Global 100 electronics

consumer goods

manufacturer with a R&D

facility in Malaysia.

What We Did:

• Trained team on Voice-of-Customer (VoC) techniques. Coached

team through multiple successful execution VoC field exercises

• Trained & facilitated through “Reverse Engineering” of leading

competitor units

• Trained & coached team on the Best Practices for New Product

Development

• Trained & coached >50 staff on the tools & methodologies of DFSS

including Qualify Functional Deployment., Value Stream Mapping,

Lean concepts, Statistical Tolerance. Cause & Effect Matrix,

Manufacturing Capability Assessment, Benchmarking, Design of

Experiments, DMAIC, etc.

• Implemented a Stage-gate New Product Development process

Challenge

Lead-time to make major

product changes took 1-year.

Product changes made by

“perceived” market desire.

Additionally, losing major

market share to Chinese

manufacturers & don’t

understand reasons

Results

• Reduce the new product introduction process lead-time from >1-

year to <90-days

• Standardize hardware, etc. and introduced “modular”

components. Reduced component/hardware complexity by 70%.

• Reduced manufacturing cost by 35%

Business Transformation & ERP Implementation : Lean Manufacturing

Company:

A Top 10 global automobile and

motorcycle manufacturer’s

facility in Indonesia.

What We Did:

• First task was to create a standardized Bill-of-Materials and part

nomenclature structure across all models of trucks, cars &

motorcycles

• Assessment and analysis of manufacturing planning &

scheduling processes & activities.

• Constructed a gap analysis of current ways-of-working and the

chosen ERP system’s capabilities.

Challenges

• Client wanted to implement

an ERP system across all

divisions of a multisite fully

vertically integrated

manufacturing conglomerate

• Needed to synchronize the

manufacturing of an

extensive & diversified array

of components to the final

assembly. Components

included molded plastic

parts, metal fabrication,

engine assembly,

transmission assembly,

outsourced assemblies, etc.

Results

• New “Lean” planning & scheduling processes were

implemented.

• Kanban system implemented to synchronize component

production with final assembly

• Waste was minimized throughout all operations

• ERP system was successfully implemented and projected

savings achieved : >US$2-million/year

• Processes were aligned to accommodate implementation of a

new automobile platform to serve their total Asian market

Business Transformation & ERP Implementation : Lean Manufacturing

Company:

A Global 100 manufacturers of

computers & peripherals

including external drives,

printers, audio/video devices,

etc.

This was a multisite operations

in Singapore which supplier

product worldwide.

What We Did:

• Conducted a Lean assessment of manufacturing facilities and

all key operational & transactional processes

• Created a overall future state Value Stream Map to align

process engineering and ERP functionality

• Trained multi-levels of staff in Lean tolls & methodologies

• Coached client’s staff in the execution of a multiple-layers of

improvement projects

Results

• Exceeded achieving the overall cost reduction goal of $5-million

• Simplified all key operational & transactional processes

• Supported the re-laying out of key faculties and/or assembly

lines to minimize waste

• Facilitated the consolidations of operations as needed

• Fully implemented the chosen ERP system

Challenges

• Client wanted to implement

an ERP system across all

manufacturing sites with

linkage to global Sales offices

• Client wanted to reengineer

all manufacturing processes

and achieve over $5-million

in annualized savings

Re-engineering of Customer Packaging Configuration / Design for Six Sigma & Lean Manufacturing

Company:

An US Fortune 25 company’s

largest manufacturing facility in

Thailand. Manufacturer of

medical devices and a

healthcare service provider.

What We Did:

• I facilitated a multi-function project across three continents

that included extensive Voice-of-Customer surveys.

• Constructed a Quality Functional Deployment matrix to

capture, evaluate and prioritize requirements from global

companies.

• Ran a 3P (Production Preparation Process) program to evaluate

new packaging materials, packing configurations, artwork

changes, etc. Challenges

• Wanted to improve the

environmental attributes of

their current packaging

configuration; which would

result in a marketing

advantage and reduce

operational costs

Results

• Reduced the overall packaging material of key products by

>40%

• Reduced the customers’ onsite refuse by >38%

• Achieved >$1-million in annualized operating cost (material *

labor)

• Was the basis of a solid marketing campaign focusing on the

new sustainable environmental friendlily packaging scheme

Manufacturing & Supply Chain Strategies / Market & Competitiveness Analysis

• For Global Big 4 Oil & gas company, I conducted a three country (China, India & Vietnam) analysis

of their sheet metal manufacturing capabilities, their supply landscape and cost structure. I

completed on-site evaluations of short-listed manufacturing candidates and submitted a detail

final report to their UK HQ.

• For a Global 2000 German-based semiconductor manufacturer. I led a team to analyze their future

expansion plans into low-cost regions, Eastern Europe & East Asia. I developed a dynamic cost

model to consider all cost variables and manufacturing scenarios; i.e. build a new factory or

outsource product. End result; I, personally, was able to introduce them to a strategic partner in

China.

• For a Philippine association of Semiconductor & Electronics manufacturers (consisting of MNCs

such as Intel, Texas Instruments, Analog Devices, Fairchild, Lexmark, amongst others); I conducted

a comprehensive analysis of the Philippines’ competitiveness & capabilities verses their geographic

rivals; China, Malaysia and Singapore. I was the association’s advocate in seeking changes from the

Philippines’ Department of Trade & Industry and members of the President’s cabinet.

• For a medium-size privately owned Filipino investment company, I conducted a market –entry

assessment of the Electronics Manufacturing Services market . Final report looked at the potential

serviceable market, industry sectors’ requirements, cost structure, overall feasibility & risk

analysis, etc.

Manufacturing Strategies

• For a Fortune 50 American company’s manufacturing facility in Thailand, I researched & developed

a comprehensive Business Continuity Plan looking at supply & logistics contingencies and self-

manufacturing / outsourcing opportunities. The Business Continuity Plan was complemented by

an analysis of Thailand’s natural disaster and political stability risks.

• For Fortune 50 American company, I led a make-verses-buy/portfolio-rationalization analogy of

their most strategic & profitable product lines. The comprehensive study looked at Intellectual

Property concerns, manufacturing capabilities of potential suppliers/manufacturers and impact on

financials (deleveraging of assets, tax implications, severance impact, total cost, etc.) demand

verses internal/external capacities, and overall benefits / risks / barriers.

• For a Global 2000 telecommunication manufacturer, I conducted and managed the execution of

global manufacturing rationalization projects resulting in the shutting-down & consolidation of

three manufacturing sites, the outsourcing of several product divisions and the strategic start-up

of facilities in Malaysia, Thailand & China. Additionally, we rationalized our key global supplier

strategy; localizing suppliers where needed and centralizing procurement / sourcing activities

where possible.

Still Skeptical?????

Let’s Get Started

with a

Free Assessment

55

56

Free AssessmentThe assessment would be completed within 1-day and you would receive an assessment score

and an assessment report of our findings & observations within a week. The Assessment

would be focused on identifying Lean Waste opportunities within your operations.

57

Free Assessment

Benefits of the Assessment to you ……..

1. Gives you a quick assessment of the efficiency & effectiveness of your operations.

An unbiased assessment conducted by a seasoned expert in operational

excellence.

2. Gives you a baseline for improvement opportunities.

3. Quick Wins! Our assessments most often results in a couple quick wins that can be

implemented quickly and get you immediate rewards.

4. Allows us to mutually identify & quantify improvement opportunities.

5. No Obligations! You will not be obligated to proceed further with World

Competition Consultant BUT we are very confident that we will show you the

benefits in further engagement with us. But if you decide not to further proceed

the identified opportunities in collaboration with WCC; you’ll at least have a

baseline for your internal performance improvement initiatives.