onTrack management company presentation

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onTrack management company presentation
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business concept
OnTrack management is a business consulting
company focusing our customers'competitiveness
by enabling them creating exceptional
profitability and operations excellence. Our
approach is always strictly analytical, solution
and result focused paired with a deep involvement
in implementation. OnTrack management offers
business consulting services for mid to large
sized companies. Depending on customer strategy,
targets and needs, onTrack management offers
adapted solutions for profitability improvement
and operations excellence achievement. All tasks
directly involve management and cross functional
teams. This is an absolute requirement to secure
task efficiency and results. OnTrack management
has performed strategic and operational tasks
within Telecom, Industry,Building, Commercial
Vehicle and Automotive sectors for customers as
Volvo Cars, Autoliv Inc, Ericsson, Volvo
Construction Equipment, Atlas Copco, ABB,
FlaktWoods, Dynapac and Invensys. Major
achievements are substantial improvements in
profit margin and operations efficiency within
medium and large sized Nordic and European
Corporations. Strong customer reference cases and
personal references are available on top
management level.
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services
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customers

• company task locations
• ABB Robotics Sweden, Norway
• Ascom Tateco AB Sweden
• Atlas Copco AB Sweden, Europe
• Autoliv Inc Sweden, Europe, US, Asia
• Dynapac AB Europe
• Ericsson AB Sweden
• FläktWoods AB Sweden, Finland, UK
• Invensys PLC US
• NovAseptic AB Sweden
• Scania AB Sweden
• Thule AB Sweden
• Volvo Car Corporation AB Sweden, Europe, Asia
• VCE Articulated Haulers AB Sweden
• VCE Components AB Sweden
• Tetra Pak Sweden

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cases
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case 1industry operations excellence
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case 1 industry operations excellence

• business
• industry and automotive supplier (turnover gt1 B)
• company situation at start of assignment
• sector leader
• decreasing profit and increasing competition
• management challenges
• high product cost and increasing competition
• results
• operations KAIZEN review
• 150 productivity
• -80 throughput time
• company culture change
• improved cost, lead time, quality and motivation
  by direct analysis and implementation involving
  all staff
• substantial direct effect on EBITA
• project payback time lt 4 months including
  development and rebuild of manufacturing site

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case 2building industry operations excellence
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case 2 building industri op ex

• business
• budiling industry supplier (turnover 600 M)
• company situation at start of assignment
• sector leader
• decreasing profit and increasing competition
• management challenges
• high product cost, long OTD and increasing
  competition
• results
• VOC, design, operations KAIZEN review
• current project status implementation going on
• plus 100-300 productivity
• less 90 throughput time
• less 25-60 product cost
• company culture change
• substantial direct effect on EBITA
• prel project payback time lt 2 months

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case 3automotive sourcing review and strategy
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case 3 - sourcing review strategy

• business
• car industry (turnover gt12 B)
• company situation at start of assignment
• leading sector in purchasing and lean design
• decreasing profit and increasing competition
• management challenges
• high product cost and increasing competition
• results
• global sourcing review and definition of sourcing
  strategy
• 100 M annual saving potential (-30)
• 30 M annual savings implemented in June 2005
• methodology benchmark

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case 4automotive global benchmarking and
operational performance
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case 4 operational performance

• business
• global supplier of automotive systems (4.5 B
  sales)
• company situation at start of assignment
• profitable and market leader
• management challenges
• clarification of global opportunities in product
  cost mainly from a RD and sourcing
  perspective
• regional RD and sourcing
• global cross-functional product development
  QLE
• lack of means of measurement, processes and
  methods
• achieved results (gross targets)
• duration 3 months
• analysis of global operational performance as
  function cost
• appr 2/3 repr. of product portfolio analyzed
• global best cost practice methods and tools
• 5-80 global product cost saving potentials
  identified
• currently appr 1/5 of potentials implemented (6w
  post-del.)
• global information systems/IT and processes
  being updated

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case 5 telecom operational performance
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case 5 telecom op. performance

• business
• global telecom system supplier (12.5 B sales)
• company situation at start of assignment
• substantial negative profit margin since 24
  months
• product project off target regarding Quality and
  Leadtime and a willingness to use this window
  for ROI improvement
• product complexity, gt1000 components
• management challenges
• improve project ROI through product cost
  improvement
• reduce cost at sustained volume
• achieved results
• duration 6 months
• CRP methodology applied on critical product
  project 6 months start of production
• set-up and coaching of cross functional project
  teams
• 21.1 product cost reduction implemented after 4
  months
• project ROI substantially improved

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case 5 telco op. performance
RED bars - implemented cost saving
BLUE bars - residual potentials
A
B
C
D
E
F
G
H
I
0
10
20
30
40
50
60
70
80
90
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case 6 product excellence
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case 6 product excellence

• business
• industry and automotive supplier (turnover gt1 B)
• company situation at start of assignment
• sector leader
• decreasing profit and increasing competition
• management challenges
• high product cost and increasing competition
• results
• product property review
• KAIZEN project
• benchmarking, value analysis, cost analysis
• -50 direct product cost potentials with
  potential large direct effects on EBITA
• payback in most cases, less than 1 year

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case 7LEAN manufacturing
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case 7 lean manufacturing

• business
• industry sector (turnover 1 B)
• company situation at start of assignment
• decreasing profit and increasing competition
• management challenges
• high manufacturing cost, long throughput time and
  increased competition
• results
• lean manufacturing study on one manufacturing
  site
• productivity 60
• lead time 70
• bound capital 50

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other cases various sectors
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case operational performance

• business
• global automotive manufacturer and global
  automotive supplier of electronics
• company situation at start of assignment
• supplier is profitable global top 5 in rank
• management challenges
• no price changes last 3 years and no initiatives
  or opportunities to reduce cost from supplier
• urgent need to reduce product cost substantially
• products concerned has high impact on total car
  cost
• achieved results (gross targets)
• duration of 3 months
• supplier development program design,
  purchasing/value chains and manufacturing
• product cost reduction implemented year 1, less
  10, 8 M savings
• residual potentials in 3 years 25

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case business performance

• business
• automotive interior supplier (80 M sales, 2
  gross profit)
• company situation
• substantial loss in 2001, restructuring ongoing
  2002
• management challenges
• analyze and understand opportunities in
  operational performance
• limited control of direct material cost (50 of
  sales)
• low profit within several customer segments
• high dependancy on a few automotive customers
• our performance improvement proposal
  (potentials)
• duration 1 month
• market/customer differentiation, 6 M (8)
• product differentiaton/specification, 2 M (3)
• manufacturing and logistics optimization, 7 M
  (9)
• restructuring of material purchasing 8 M (10)

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case COS performance

• business
• global telecom system supplier (12.5 B sales)
• company situation at start of assignment
• substantial negative gross margin since 24
  months
• operational performance improved with
  substantial lay-offs
• cost of sales representing appr 80 of turnover
  still high
• management challenges
• analyze and identify short and medium-term cost
  of sales optimization opportunities
• set a change strategy
• achieved results
• duration 2 months
• CRP methodology applied on customer COS
• analysis performed on product families
  representing a major share of customer
  product portfolio
• areas not addressed satisfactory have
  challenging potentials within supply chain,
  product cost, distribution and installation
• change strategies proposed on COS gross
  potential 2 B, whereof potential net effect
  within 2 years is est. to1 B (-35)

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case operational performance

• business
• global automotive manufacturer (12 B sales)
• company situation at start of assignment
• challenging targets on cost reduction for
  operational performance improvement
• management challenges
• complete driveline system having challenging
  cost targets
• improve gross margin performance through
  operational and product cost performance
  improvement
• reduce cost at sustained volume
• achieved results
• duration 3 months
• benchmarking of function cost within the group
  and competition
• set-up and coaching of cross-functional teams
• an average cost saving potential of 15
  identified
• cost reduction strategies and operational
  proposals covering approximately 90 of value
  identified

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case cost management

• business
• global automotive supplier (4.5 B sales)
• company situation at start of assignment
• high and stable cost of material
• need to reduce cost for sustained profitability
• management challenges
• improve product cost performance
• reduce cost at sustained sales volume
• achieved results
• onTrack cost reduction project started
• set-up and coaching of cross-functional teams
• potentials of appr 50 generated from product
  design changes, manufacturing optimization and
  value chain analysis
• implemented cost savings 2002 5, 2003 30

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case warranty cost

• business
• automotive manufacturer (12 B sales)
• company situation at start of assignment
• accelerating warranty claim cost on specific
  property and design areas
• management challenges
• analyse accelerating warranty cost and set
  activities to decrease warranty cost short
  and medium term
• results
• duration 2 months
• savings achieved appr. 5 M (67)
• success factors
• efficient analysis and identification of
  solutions on each high-cost area
• efficient communication with markets and internal
  staff
• cross-functional approach
• leadership
• implementation responsibility

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case project turnaround

• business
• automotive manufacturer (12 B sales)
• company situation at start of assignment
• high risk of critical delay in important car
  project due to 10 sub-systems off-track
  regarding leadtime (3-6 months)
• management challenges
• get project back on track to secure launch and
  ROI
• results
• duration 2 months
• smart management methodlogy applied
• led and implemented change in 7 cross-functional
  teams
• total leadtime reduced with appr -40 whereof
  design -25 and tool manufacturing 15
• reduced product cost

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case lean manufacturing

• business
• commercial vehicle manufacturer (1.5 B sales)
• company situation at start of assignment
• business turnaround of complete company due to
  negative profit
• group cost reduction programme applied
• management challenges
• reduce cost of current product and programs
• results
• duration 3 weeks
• process optimization methodology applied on a
  major tier 1 supplier
• productivity 54
• inventory - 50
• layout - 11
• throughput time - 41
• capital short-term 70

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case cost strategy

• business
• commercial vehicle manufacturer (1.5 B sales)
• company situation at start of assignment
• dropping profit and price competition
• management challenges
• identify and implement reduction of product and
  operational cost short and medium term
• results
• duration 1 month
• cost analysis of complete vehicle to identify
  opportunities
• cost reduction strategy on 80 of value
• average cost reduction potential short-term -20

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case supply structure

• business
• commercial vehicle manufacturer (1.5 B sales)
• company situation at start of assignment
• dropping profit and price competition
• management challenges
• local/regional sourcing
• small and traditional supplier base
• globalize purchasing and identify competitive
  suppliers
• results
• duration 2 months
• identify high cost and cost driving systems
• identification of potential supplier
  cross-sector and competitor benchmarking
  within sector
• 40 potential suppliers identified on 4 modular
  areas

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case value analysis/design cost

• business
• automotive manufacturer (12 B sales)
• company situation at start of assignment
• high demands on product cost reduction
• management challenges
• current programs does not meet targets
• results
• duration 4 months
• Value Analysis methodology applied on
  mechanical system
• product cost reduced 20

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case value analysis/design cost

• business
• automotive manufacturer (12 B sales)
• company situation at start of assignment
• high demands on product cost reduction
• management challenges
• current programs does not meet targets
• results
• duration 6 months
• Value Analysis methodology applied on high cost
  exterior systems
• product cost reduced 50 and appr 7 M/year

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case project turnaround

• business
• automotive manufacturer (12 B sales)
• company situation at start of assignment
• high risk of critical delay in important car
  project due to 10 sub-systems off-track
  regarding leadtime (3-6 months)
• management challenges
• get project back on track to secure launch and
  ROI
• results
• smart management methodlogy applied
• led and implemented change in 7 cross-functional
  teams
• total leadtime reduced with appr -40 whereof
  design -25 and tool manufacturing 15
• reduced product cost

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case group cost strategy/training

• business
• industry sector
• company situation at start of assignment
• turnaround situation
• management challenges
• need to establish implement a strong turn
  around program
• results
• set-up and implementation of group cost reduction
  training program
• strategic guidance to management
• define, initiate and coach projects
• current cost reduction potentials in projects
  10-30

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case product cost

• business
• industry sector (turnover 1 B)
• company situation at start of assignment
• decreasing profit and increased competition
• management challenges
• need to establish implement a long term product
  turnaournd program
• results
• review of appr 50 of group product cost
• definition of cost strategies on major
  modules/commodities
• strategic guidance to management
• define and initiate cost reduction ideas
• current cost reduction potentials in projects
  10-40