The site had already cut a lot of cost, but still had to take out \u20ac10 million of structural cost to survive. A six-week study showed that \u20ac12.7 million was responsibly achievable: 27% more than the target. Within a year, the site itself had delivered \u20ac9.3 million, and the programme was still running.<\/p>\n\n\n\n
Duration: Six-week study<\/p>\n\n\n\n
“I already thought the target was more than challenging. So I hadn’t expected savings potential on this scale. The results we have already achieved show just how well-founded and realistic the proposal was. Closure is off the table.”- Business Unit Manager<\/p>\n\n\n\n
Demand was shifting strongly to new product types, while demand for the established range fell sharply. The company responded by moving production to low-cost countries and improving direct labour productivity at the site.<\/p>\n\n\n\n
The site had already cut a lot of cost, but still had to take out \u20ac10 million of structural cost to stay competitive. Without those savings, it faced closure.<\/p>\n\n\n\n
Until then, cost reductions had focused mainly on the direct organisation. The indirect organisation had received little attention. As a result, the balance between them had been lost. Axisto was asked to map the savings potential in the indirect organisation.<\/p>\n\n\n\n
A sharp vision as the starting point.<\/strong> Because the site faced major, far-reaching change, a comprehensive approach was needed. Together with the client’s team, we turned their deep knowledge of the market into a sharp new vision and a \u20ac10 million cost reduction target.<\/p>\n\n\n\n Built up from zero.<\/strong> Once the current activities and cost structure were properly understood, every activity was tested against the vision, with zero as the starting point rather than last year’s budget.<\/p>\n\n\n\n Designed the ideal set-up.<\/strong> Activities were combined, the organisation lost layers, and the work was organised into clear clusters along the entire order process.<\/p>\n\n\n\n Tested against reality.<\/strong> Even after applying practical constraints and business risks, the design largely held up.<\/p>\n\n\n\n The six-week study showed that \u20ac12.7 million of structural cost reduction was responsibly achievable: 27% more than the target. In the approved design, indirect FTEs fell by 47%, with a simpler, flatter organisation and self-managing teams along a redesigned end-to-end order process.<\/p>\n\n\n\n On top of that, there was a clear, compelling vision aligned with the changing market, and a site with a new outlook for the future.<\/p>\n\n\n\n The client developed the proposed organisation design further itself, drew up an implementation plan and carried it out. Just under a year after the study, \u20ac9.3 million of structural cost reduction had been delivered, and the programme was still running.<\/p>\n\n\n\n The closure plans are off the table. At this cost level the site is competitive again, and work is under way to introduce a new generation of products.<\/p>\n","protected":false},"featured_media":1814,"template":"","service-types":[93],"divicion-categories":[],"class_list":["post-985","case","type-case","status-publish","has-post-thumbnail","hentry","service-types-the-operation-can-do-more-than-it-produces"],"yoast_head":"\nWhat it delivered<\/h2>\n\n\n\n
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What happened afterwards<\/h2>\n\n\n\n