Telecom turn around and business development case

(current turnover approximately +200 BSEK, whereof division at the time 2 BSEK)

 

The program initiative was initiated by Business Area Network management team. The company was in a turn around situation with no profit and weakened sales. The program task was an analysis in depth of approximately 80% of current cost of sales. The company was clearly functionally organized with limited cooperation between functions especially when it came to cost management and product development. Once the task was defined and planned a number of workshops were set up with all functions concerned.

The task revealed numerous opportunities and also hidden waste as "pure waste" that was partly visible but ignored and also "structure waste" in terms of limited cooperation and rigid walls between organizational functions.

Task findings were transferred to executive change programs that generated substantial cost reduction and enabled group turn around. Major improvement areas were R&D, Procurement, Manufacturing and Logistics. Exceptional savings, >10% was later implemented within all functions. Currently the company performs well both regarding growth and efficiency.

The success factors in the task were people involvement, in depth application of lean concept in product planning, design, procurement and logistics paired with communication and analytical skills.