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Context / Scope of project
Our client was the $7 billion division in a global food company covering Planning, Operations and Sales . The group had undergone significant organisational change in past 2 years and was in the process of developing a new management system. PIP was engaged to support the development of these new systems.
Client achieved:
- Improved accountability through regular tracking and reporting of KPIs developed to reflect business group performance
- Increased transparency through the use of the VDTs to break down / build up business performance
- Closed loop reporting to drive performance improvement over time
- The development of root cause and business improvement analytical tools.
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What we did:
Developed a detailed, variance based value driver tree (VDT) that focused business units on controllable levers and broke down total business performance in terms of these levers:
- Planning function on accuracy of input and forecast information used to develop the production plan, as well as the overall optimisation of stock levels / age
- Three major operational functions on executing the plan efficiently and minimising wastage / losses
- Sales functions on achieving price and volume targets.
Using the VDTs:
- Developed KPIs for the leadership team of the group with the VDTs clearly laying out the KPIs to cascade down through lower levels of the business
- Implemented a regular and structured performance meeting for each business unit to improve accountability using the KPIs developed and key PIP wiring principles
- Used the VDTs to provide the business improvement group with a tool that will allow the rigorous calculation and tracking of benefits.
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