Issues

After some initial analysis it was found that often key management were not focusing on correct issues. The engineering directors & managers were spending too much time on non-value added activities, which as a result reduced the time available to train the staff & perform their key function, the development new cars

Objectives

Given these findings LCG and our clients task was clear. We undertook a 30 week project to reduce the non-value added (NVA) time per director & engineer by analysing & tracking every week. We defined NVA with our client by asking questions of each activity.

1. Does the customer value the activity?

If the customer considers what you’re doing is important, then the customer is prepared to pay for you to do it. It is, therefore, value-adding activity.

2. Does the activity get it right first time?

If an error results from an activity then clearly that activity did not add value – it's expensive to rectify mistakes! So, you have to put effort into getting it right first time. Such effort reduces waste and adds more value. To increase the time spent on innovation by setting dedicated innovation workshops per week/month

This pragmatic and defined appraoach is underpinned by Lausanne Consulting's Delta Approach. All of our solution's use this unique tool to develop and install our solutions.

Benefits

Having installed the new operating model the results were clear for our client and LCG to see. With a 45% reduction in NVA for the Directors and 50% reduction in NVA for the Engineers our client was able to greatly increase the volume of Value Added time. And in doing so increase productivity. Furthermore, given the great amount of productive time available to the management team and engineers Innovation sessions were installed in each development sector.