ELECTRONICS SECTOR – CONTROL ROOM IMPLEMENTATION

THE BRIEF

Electronic Design and Manufacturing business based in the UK who supplied portable broadcast equipment to the television and military.

They continually had problems achieving their revenue targets each month, with month end figures varying widely from the budget or indeed those numbers predicted as little as 1 week prior to month end.

The challenge was to implement an Operations Control room to take control of the resources, the supply chain and the planning function to drive coordination, priority, actions and responsibility to the right people to create a joined up plan.

The next challenge beyond this was to deal with eroding margins and the need to take cost out of the production process.

THE IMPLEMENTATION

Within the first week, we had implemented the first Control Room meeting, before then going on to focus on the following:

  • Daily meeting process implementation
  • Facilitating meetings
  • Implementing data correction process back into ERP system
  • Implementing check and balance processes between ERP system and physical transactions
  • Identifying supply chain bottleneck parts
  • Implementing KPI’s
  • Implementing a Revenue management tools to better forecast Numbers and risk
  • Problem-solving coaching and training (PDCA)
  • Implementing regular feedback loops to Sales and customer service
  • Assessing business & staff strengths and weaknesses (SWOT)

THE SOLUTION

The solution involved the implementation of the physical room and whiteboards, but more importantly, a manual planning and scheduling process to address the ERP system data inaccuracies.

Daily stand up meetings, with Sales order information, planning and supply chain data visible to all meant we quickly drove increased effectiveness by bringing about group priority setting and creating a consensus to ensure that accountability and responsibility created a joined up plan.

THE RESULT

Within 1 month, Revenue targets and forecast accuracy was back under control. We were then asked to stay on and run cost reduction programmes (headcount reduction). All targets achieved whilst maintaining revenue run rate to get back to profitability.

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