Customer
Industrial goods; large packaging company in Europe

Lars
Linnekogel

Strategic Workforce Optimization and Planning (SWOP)

How we delivered 10m eur run-rate savings with stragetic workforce optimization

Case

Plant labour efficiency

Project Scope

The client asked TTE for support with improving the efficiency of the company’s European manufacturing facilities in order to reduce labour costs.

Approach

Initially TTE conducted several workshops with the management team to define a standardised list of activities performed in the manufacturing plants. In a next step, HR baseline data for ~3,000 FTE was collected for all locations in scope as a basis for further analysis. Together with each local plant management team, we identified the underlying activities performed by the different teams and their resourcing.

 

“After this first round of data collection, TTE was able to perform high-level benchmarking across network plants on an activity basis.”

Lars Linnekogel, Managing Director

 

As all plants were different in many aspects, this benchmarking needed to be made further comparable. For this, TTE introduced the concept of drivers that converted absolute benchmarking into a comparison on a relative basis – e.g. labour hours per produced unit. By analyzing the data through different calculation models – considering both best-in-class as well as scale effects – an optimization potential in a number of FTE was identified on an activity basis for each plant.

In order to validate these findings, the analysis results were consequently shared with the plant management teams, and workshops for an intercompany knowledge exchange were facilitated. On this basis, an implementation plan for an agreed optimization target was executed.

TTE has further developed a custom-built web-based IT solution, through which the client firm can easily perform benchmarking and track its performance improvements over time as a continuous improvement effort.

Results

The project delivered impact across a number of areas:

  • Transparency was created and exchange about best practices across the network was fostered
  • Workforce efficiency was increased – both in the short term as an immediate measure as well as in the context of continuous improvement through establishing the TTE tool as a powerful instrument for the management team
  • Cost was reduced resulting in 10M EUR run-rate savings, with an implementation ramp-up over the course of three years


The Team
Enablers



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