$1 B Office and Consumer Products Business
Business Case
Summary
- Declining market, low-cost competition and unsuccessful innovation causing multi-year revenue declines
- Four-year tools and results-focused Lean and Six Sigma cost savings preserved profits.
- Insufficient process focus and root cause problem solving caused performance decline in 5th year
- Guided implementation of Lean System Thinking Leadership to understand needed process improvements to deliver targeted results—both short-term and strategic.
- Expanded improvement efforts to entire supply chain, including JIT logistics, supplier development and customer collaboration. Refocused mid-management on cross-functional process improvement for lasting results.
- Facilitated management decision-making to transform innovation and demand creation as a system to restore growth.
| Metric | Before | After | Improvement |
|---|---|---|---|
| Year 1: Lean Leadership Introduced | |||
| Inventory Turns | 9.9 | 12 | +2/1 (+21%) |
| Cost Out | -$16 MM | ||
| Year 2 and Beyond: Mid-Range Plan and Hishin Kanri Deployed | |||
| Inventory Turns | 12 | 15 | +3 (+25%) |
| Cost of Goods Sold | (-10%) | ||
| Freight & Distribution Cost | (-20%) | ||
| Innovation Transformation will Yield 1st revenue increase in 7 years! |
- Key customer relations strengthened—won “Supplier of the Year” award from largest customer.
- Transformed Innovation process generation over $100 million of new sales annually.
- A culture of Lean Leaders—feeder of expertise to corporation.