Case Studies: Improvement Initiative Finds Results
The manufacturing industry is under heavy pressure. A division of Philips Lighting (the Benelux, Belgium and the Netherlands) that produces filaments and coils used in various types of electric lamps, is no exception. It must compete with low-wage nations, which puts pressure on its cost structure and prices. But a low price is not necessarily the decisive criterion. For many clients, quality, speed and reliable delivery are more important. Meeting these criteria requires not only a different approach to quality management, but simplification of the underlying processes. In this case, a "step change" was needed and members of the client senior management team of Philips were well aware of this.
Philips contacted Celerant Consulting (Lexington, MA) and, together, conducted an analysis-using a set of ratios to define the potential for improvement and also look at details. This was about setting new goals that not only would determine the success of the business, but receive support by the management. The process was not always easy. Examining what is going well at best practices, is relatively simple. Collectively examining what is not going so well is much more difficult. However, if the process is correctly supervised, it can be powerful. After all, employees are striving to deliver their best performance.