Reclaiming Capacity: How Process Optimization Restored Competitiveness for a Custom Manufacturer
Background
A PE-owned leading provider of mission-critical services in the telecom, renewable energy, and commercial infrastructure solutions sectors completed a large acquisition of a company providing an array of support services. The integration introduced differing technologies, systems, and processes across the organization. With four lines of business within a single division operating via different processes and technologies, this $600 million organization with more than 4,000 employees across North America and India sought to merge operations for immediate efficiency gains and establish a scalable foundation for future acquisitions.
Objective
The company sought to consolidate disparate processes across multiple lines of business, reduce operational complexity, and create a scalable platform to support future M&A activity. Leadership aimed to reposition the business unit’s value stream through strategic investments in process improvements and streamlined systems. Empirical was engaged to map current processes, identify improvement opportunities, and deliver an executable roadmap that would drive costs out of the operation while building a foundation for sustainable growth and future acquisitions.
Methodology
Empirical deployed a structured Lean Six Sigma approach using the DMAIC process to identify root causes and develop targeted solutions, and took the following steps:
- Define – The Solutions team, comprised of client and Empirical members, developed a clear project charter to ensure alignment on objectives, goals, timelines, constraints, success metrics, and key stakeholder groups.
- Measure & Analyze – Led a series of key stakeholder interviews, value stream mapping exercises, site observations, field discovery working alongside service delivery teams, takt time analysis in the field, data analysis, Voice of Customer sessions, and stakeholder analysis discussions, culminating in a multi-department brainstorming session to determine root causes.
- Improve – Collaborated with the client’s team and corporate support services to consolidate four lines of business into one unified process supported by standardized technologies. Developed a new go-to-market strategy for the professional services team.
- Control – Established sustainable processes and metrics to maintain improvements and support ongoing operational excellence.
Results
- Consolidated four lines of business into one division-wide process utilizing standardized technologies and eliminating process fragmentation.
- Created a new go-to-market service strategy for two of the four lines, combining them into one line of business with the following projected outcomes:
- Increased productivity of service tickets by 100%
- Reduced capital expenditure by 50% through vehicle reduction
- Improved repair-to-preventive maintenance ratio from 1:1 to 1:3
- Reduced inventory costs by 30% through supply chain planogram optimization
- Reduced cost per stop by 45% (truck expenses, labor, etc.)
- Enabled 50% growth capacity without expanding headcount
- Developed change management enablers to support the new process and go-to-market strategy, including vehicle design/planogram optimization, safety compliance protocols, and comprehensive training and development programs.
- On track to deliver 400 basis points of operating margin improvement through comprehensive process integration and optimization initiatives.
