Download Case Study - DSM Advanced Manufacturing

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