How do you reverse a negative trend? How do you create an improvement process that produces positive results? Our client asked themselves these questions. The solution was workflow orientation, clear goals, methodology in the improvement work and committed employees.
The client
A well-known Swedish subcontractor that delivers solutions for electrical power control such as switchgear, transformers, power centers, etc.
The challenges
Delivery delays, reduced gross margin, stress and conflict, as well as a dissatisfied and declining customer base.
The assignment
Facilitate and support the client to increase their delivery capacity, develop the customer journey and improve profitability.
The Chairman of the Board explains:
"We are now in our third year of the improvement work, assisted by CANEA. During this period, we have improved our results by 10 - 12 MSEK. The truth is that before this collaboration, we were trying to turn things around on our own, but were not getting the results we needed.
I was therefore surprised by the ease and simplicity with which CANEA put us on the right track and facilitated us, step by step, to improve our own working methods and how this was done by creating commitment among the employees, who from the very beginning were given great responsibility in the improvement work.
When I look in the rearview mirror, I am tempted to think that all the improvements we have made have been obvious, but that was and is not the case. We are learning along the way as we find new opportunities with each improvement we make. It is a journey and we will continue on it.
Therefore, I cannot point to any decisive improvements. Not even our new ways of working are permanent as we are continuously improving them, within our designated target areas; Delivery reliability, customer journey and gross margin.
What is constant is rather that we repeat our way of working with improvements, our methodology, new ways of thinking and not least the cultural change we have undergone. From a stressful everyday life, frequent conflicts between different departments, to a common understanding and knowledge of our value streams and a great willingness to collaborate across departments. The improvement work has created a new positive energy and work environment".
Results and business benefits
- Increased industrialization and developed processes
- Employees with an internalized ability and willingness to continue to implement improvements.
- Increased delivery reliability: +40%
- Increased gross margin: +100%
- Reclaimed customers: +10%
- Staff turnover: -67%
- Profit improvement, 2020: Plus 10 - 12 MSEK
"We are now in our third year of the improvement work, assisted by CANEA. During this period, we have improved our results by 10 - 12 MSEK.
Chairman of the board, electric power company
