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Chemicals Sector Case Study - DSM Advanced Manufacturing Program: Developing a Change Agent Team to Drive Operational Excellence Overview Customer Challenge Benefits in Excess of 150M€ The primary objective of the client engagement was to enable the client to deliver predictable and sustainable benefits faster Location Worldwide Sector Chemicals Service Lines Business Challenge Advanced Manufacturing (AM) is an integral approach used to make DSM’s manufacturing processes more consistent and to optimize plant operations using Lean and Supply Chain tools and techniques that improve asset productivity. The program focuses on DSM’s manufacturing footprint covering over 100 sites. The main challenge consisted of a critical imbalance across regions between supply and demand, resulting in too high capital employed (both fixed assets and working capital). A global AM program was driven from corporate operations over 3 years, with all assets in scope. DSM needed the entire manufacturing organization to deliver strategic targets quickly and sustainably. Therefore, DSM increased pressure to make processes more consistent, to maximize output and to increase the reliability of the supply network. Approach Advanced Manufacturing has turned out to be a big success and has demonstrated considerable added value. As many BUs and sites have asked to run the program earlier, it has been decided to accelerate it (from 5 6 assessments a year to about 8 to 10). Hitachi Consulting was brought in to help DSM accelerate the process. It was also decided that Supply Chain Management would be linked up with the program, as an integrated approach to offer even more synergy benefits. To face these challenges, we fine tuned 4 majors solutions: ■■ Develop a comprehensive operational excellence deployment approach to improve operational performance. ■■ Develop and implement tools and an central management system that drives towards continuous performance improvement through waste and energy reduction , on-timein-full improvement within sourcing, manufacturing and distribution. ■■ Ensure a state of the art internal competence function through on-site training and coaching on a standard set of methods and tools. ■■ Maximize knowledge transfer from Hitachi Consulting and DSM technical experts to change agent team, and knowledge transfer from the team to the manufacturing site task forces. Operational Transformation, Operations Management, Organizational Effectiveness, Supply Chain Capabilities Lean Management, Asset Management, Industrial Footprint “Advanced Manufacturing brings the essence of excellence within reach, including the important dimension of culture and culture change.” - Corporate Manufacturing The main challenge consisted of a critical imbalance across regions between supply and demand, resulting in too much capital employed The program focused on DSM’s manufacturing footprint and covered over 100 sites globally. Results ■■ Benefits in excess of 150M€ across DSM’s manufacturing footprint, primarily achieved through optimized plant operations, supply chain efficiency and optimized inventories and service. About Hitachi Consulting Hitachi Consulting is the global management consulting and IT services business of Hitachi Ltd., a global technology leader and a catalyst of sustainable societal change. In that same spirit—and building on its technology heritage—Hitachi Consulting is a catalyst of positive business change, propelling companies ahead by enabling superior operational performance. Working within their existing processes and focusing on targeted functional challenges, we help our clients respond to dynamic global change with insight and agility. Our unique approach delivers measurable, sustainable business results and a better consulting experience. “Advanced Manufacturing has turned out to be a big success and has demonstrated considerable added value. As many BUs and sites have asked to run the program earlier, it has been decided to accelerate the program.” - DSM Board Member For more information please visit www.hitachiconsulting.com ■■ A sustainable, global value generation based culture through the transfer of an operational tool box, skills and behaviors to the local sites. ■■ Creation of a change agent team of 25 internal analysts, consultants and managers through on the job training and coaching. ■■ Additional output gave DSM strategic flexibility to rationalize the footprint as the next step change in performance. Hitachi Consulting is the global management consulting and IT services business of Hitachi Ltd., a global technology leader and a catalyst of sustainable societal change. In that same spirit - and building on its technology heritage - Hitachi Consulting is a catalyst of positive business change, propelling companies ahead by enabling superior operational performance. Working within their existing processes and focusing on targeted functional challenges, we help our clients respond to dynamic global change with insight and agility. Our unique approach delivers measurable, sustainable business results and a better consulting experience. www.hitachiconsulting.com