In 2015, Stratega was commissioned to advise on improving the industrial performance and financial results of a chemical manufacturing plant specializing in plasters. The plant’s situation was worrisome: industrial performance was poor, financial results were negative, and the health of the team was poor. This led to loss of money in the three plants in the territory, which could not successfully activate strategies to turn things around.
The Stratega team recognized that poor plant performance was a consequence of poor team health. Extensive work needed to be done on leadership and ownership dynamics within the team in order to successfully initiate strategies for improvement. However, the Stratega team also noted the lack of an Operational Excellence methodology and the need to implement it from scratch in order to achieve their goals.
Stratega’s Solutions and Approach:
Stratega’s team began with strong training on operations strategies, focusing on 5S, Performance Control System (PCS), Total Productive Maintenance (TPM), and logistics process improvement. This was accompanied by a leadership and change management approach to improve team health and gain ownership of improvement processes. In addition, Stratega experimented with the use of BLIS (Cost Model) software to identify areas where cost savings could be made.
As a result of Stratega’s holistic approach, the chemical manufacturing plant was transformed. Implementation of the Operational Excellence methodology resulted in a 30% increase in NOP (from -10% to +20%) and a significant improvement in market share due to better plant utilization and improved business profitability. The results were confirmed in the years following Stratega’s intervention. The work done has created a solid foundation of processes and technologies, durable and with great future potential.
Key to Success:
The key to Stratega’s success was a willingness to start from within, working hard on team health and the dynamics of leadership and ownership. This enabled the successful implementation of the Operational Excellence methodology and sustained results. In addition, Stratega’s holistic approach, based on a combination of operations, leadership, and change management strategies, has enabled it to achieve results of global excellence.