Turnaround and strategy realignment steam generator products

Turnaround and strategy realignment steam generator products

A major international manufacturer of

Assignment

A major international manufacturer of steam generators and boilers for steam turbines in power stations was in the red. Its competitors on the global market for installations in power stations had made significant progress in terms of quality over recent years, and were moreover able to translate their lower labour costs into lower prices.

Approach

Together with the management team, we launched a regeneration process. After areas of possible savings had been identified, and these had been divided into ‘achievable in the short term’ and ‘achievable in the longer term’, immediate action was taken to implement the short-term savings. An analysis of the market and company’s positioning showed that the added value could, and had to, be increased for both its customers and in order to guarantee the continuity of the business itself.
The strategy focused on top grade knowledge and technology, but it also involved a more targeted definitionof the basic product range and the standardisation of parts and modules. This delivered benefits in terms of purchasing costs, production lead times, and planning, and these consequently freed-up time for customisation to be delivered to customers who were willing to pay for it.
We coached individual managers in the formulation of the changes in their departments and the achievement of their targets.

Results

After only a few months, the company was back in the black.
The implementation of the new strategy took more time, but was pursued with a great deal of enthusiasm.
The new élan was reflected in its performance in the market; customers are now showing a great deal of interest in the innovative products and services.

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