STRATEGY PROCESS SETS THE COURSE IN BUSINESS MANAGEMENT

The owners of the business wanted to use the process of due diligence as a tool for other due diligence disciplines. This was undertaken in three parts. The motivation was to see how the business’s supply chain could be secured thereby strengthening the position of the business on the market.

The first part of the process established and implemented a preliminary strategy, structure and organisation in the business.
The second part identified attractive synergies in the event of an eventual merger between two companies. The focus was on delivering an improved price structure and quality in black and stainless steel for system constructors.
After the acquisition of sound enterprises the third element then came into play as to how the two businesses were to grow in a comparatively stagnant market.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

ABOUT THE CLIENT

Our client is a Danish project business which designs, constructs and supplies exhaust and pipe systems, modules and tanks as well as steel constructions for the nuclear, marine and off-shore industries.

The business was composed of 13 personnel with a production capability in Poland and a turnover of slightly under 40m DKK. In 2016 the business acquired the sound activities of a Danish metal production company. Today, the company’s Danish business comprises a total of 45 employees with a turnover of approximately 70m DKK.

THE BOTTOM LINE

Both companies each achieved positive results on their first posting for the first time in nearly 2 years.

CASE 1/9

DEVELOPMENT PROCESS WITH EFFECT ON CAPACITY AND BOTTOM LINE

The board and production management sat down to undertake a verification and validation process. The aim was to determine possible structural areas of growth within the business and furthermore to create increased focus on the bottom line.

After reviewing production lines, stock and planning, a development process was established to fulfil estimated potential.
The plan was split up and built in stages. The motivation was that work should be focused on each stage. Each stage underwent a test to determine if the results were on course to meet expectations.
After this an implementation process was undertaken on each of the target areas. The procedure gave management and owners a good starting point in order to assess the impact of the measures being taken.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

ABOUT THE CLIENT

Our client is a medium-sized Danish foodstuffs business who supply ”to go” products which the customer can take with them on route during their busy day. The organisation has previously undertaken improvements in production and sought input as to how productivity could be further increased to achieve the desired future growth in sales.
Directors and management were aware of unfulfilled potential and they needed the capacity to analyse, identify concrete projects and to implement them.

THE BOTTOM LINE

The business has begun to fulfil its potential capacity and to improve on its bottom line figure of 2-3m DKK per year.

CASE 2/9

THE WHOLE ORGANISATION GETS INVOLVED TO CREATE SHORT-TERM GROWTH AND INCREASED PROFITS

The board and management wanted a process with the focus on strategy rollout. The aim was to get answers as to why there were so many problems on a daily basis with stressed employees and a general deficiency in the comprehensive view on capacity and stock levels.

The project took as its starting point the owner’s vision of the future of the business as he approached retirement age. Together the sales and production teams identified the business processes. Furthermore, clients, competitors and the overall business performance were analysed. A new vision and growth strategy were formulated based on opportunities and threats. With the priority aim and plan in mind for the coming three years, the first step was to change the organisation. Working together, the board, management and employees identified areas and processes which were to be altered and these were approved and implemented.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

ABOUT THE CLIENT

Our client is a smaller Danish service and production business who leases and supplies site huts and pavilions in basic and system modules for, amongst other things, accommodation, portakabins, construction sites and refugee camps both within Denmark and abroad.
The business has been family-managed for two generations and now the owner is considering his own and the company’s future. The management wants to strengthen their position on the market which is predicted to be consolidated over the coming years. It was necessary to sketch how strategies and goals could look as well as establishing an action plan.

THE BOTTOM LINE

3 months after implementation, sales have increased by 10m DKK with a 50% increase in the bottom line.

CASE 3/9

PROCESS LINE OPTIMISATION PROVIDED INVIGORATED ENERGY BETWEEN CLIENT AND SUPPLIER

In cooperation with management, optimisation of the packaging process was selected. The task was organised with product specialists, laboratories, development and production on board. As its starting point this collaboration took selected logged process data.

Critical process parameters were identified and with statistical access certain irregularities were found in production. These were deviations in monitoring equipment and used raw materials. Furthermore a pattern was found in process line operations which indicated deviations between different teams.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

ABOUT THE CLIENT

Our client is a medium sized Danish production business and key player on the food packaging market. The business experienced considerable deviations in respect of quality which had been highlighted by a customer in one of the Nordic countries who didn’t want to take delivery of a consignment worth millions. The business, which is very knowledge-intensive, worked with these deviations over a long period of time.

THE BOTTOM LINE

Irregularities in quality were solved and 2 specialists were released for development, the client’s claim for 4m DKK was cancelled leaving a satisfied customer.

CASE 4/9

FACTORY MANAGEMENT OPTIMISES THE CAPACITY OF EXISTING PROCESS LINES

New factory management wanted to incorporate more visual checks in production. Data sources were based on existing entries and were organised in clear images. ‘Board meetings’ were set up and greater responsibility was delegated to the operators.

Their task now entailed reviewing and organising production activities within order settlement and problem solving. As part of the implementation, management and operators got together. This created a necessary focus on the most important production tasks. It was important for the management to involve and organise the process operators. Their input was decisive in being able to make better use of the line’s capacity.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

 

ABOUT THE CLIENT

Our client is a global supplier of protein for the food industry. The business, which is process heavy, has just taken on new owners in the form of a large private equity fund. They desire significant development of the business and a strong growth in sales. They also wanted to see a substantial increase in production. The company and its owners are working on increasing productivity and have started working on this area.

THE BOTTOM LINE

After implementation of the ‘board meetings’ total capacity utilisation has increased by 10% with positive development over the subsequent months.

CASE 5/9

OPERATIONAL RELOCATION BECAME A RELOCATION OF ALL THE BUSINESS PROCESSES

Management chose to plan and undertake a reallocation in two phases. First there was a need to create space in the western factory. 70 jobs would be altered significantly to free up 1,000 square metres of space.

After that the eastern factory would be wound down, relocated and set in operation. The project process was organised with 17 subordinate part-projects. Order settlements and contact with allocated resources from all the teams and communication with clients was decisive. The procedure ensured that the project team and operating staff would be happy with the task.
The overall management was undertaken in collaboration with the boards and management teams from both factories. This ensured that both clients, management and employees became a dedicated team.
The steering group ensured consensus and progress. Project teams undertook analyses, layouts and system tests on stock, production and logistics along with future operators and supervisors before and during installation and start-up.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

 

ABOUT THE CLIENT

A large international concern which is a market leader within cooling, heating and fluid management, took a strategic initiative to relocate a minor but important production activity with a large turnover. The factory was to move from east to west Denmark. The motivation was to create a stronger business platform. The aim was to be more competitive in a particular product group. Likewise through a more robust supply chain to increase growth.

THE BOTTOM LINE

The relocation, installation and start-up of the factory was executed on time. As well as the closure and sale of the buildings which amounted to millions of kroner. 20% space was saved.

CASE 6/9

INTEGRATION HIGHLIGHTED THE SYNERGY POTENTIAL AND MADE HEAVY WORK PROCESSES EASIER

After a recent factory relocation, the board and management made the decision to instigate a necessary integration process. A review of business processes showed a need for changes in important areas. These involved a transition from two ERP systems to one, re-route order processes from the production centre to the distribution centre. Also to centralise and simplify quality and internal logistic processes. Furthermore, a transition management team was established with the recruitment and training of 80% new colleagues within a few months.
It was vital for sales to maintain supply capabilities therefore commitment and momentum had to be in evidence from day one.
In collaboration with the management group and transition management team both an anchoring and decision making capability was established as well as an ability to handle difficult situations which required integration.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

 

ABOUT THE CLIENT

A large international business which is a market leader within fluid management made the decision to integrate a smaller but nonetheless important production enterprise. The motivation was to create economic synergies amounting to a value of 25m DKK over a number of years. The business platform was established so that both product and supply chain had the potential to increase its competitive edge from year one.

THE BOTTOM LINE

The integration of order, quality and logistical processes, 15% increased productivity and a 50% reduction in space requirements. The ERP transition was halted in favour of a new system.

CASE 7/9

WORKING STRENGTH IN THE CENTRE OF ACCELERATED TECHNOLOGY

The transformation process had been underway for three years with the purchase and implementation of ten ”state of the art” filling lines.

Gradually, as the new fully-automatic filling lines were installed, a growing problem was observed. The efficiency of the line was falling in relation to previous mechanical lines. Therefore, senior and development managements decided to undertake a verification of the whole system to understand the challenges facing them. It turned out that there was also a great need to transform the employees’ way of thinking and habits, logistical processes and organisation on all of the lines respectively in order for the project to be fully efficient and to be able to recover lost repayment time.

The project process was split into three phases. Proof of Concept, Proof of Business and Proof of Scale. Training systems, training and organisational adjustments were implemented from dairy manager down to operator. 116 employees in all.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

 

ABOUT THE CLIENT

Our client is a large international concern within the foodstuffs sector who deliver dairy products. A few years previously, the business had taken an important strategic decision to undertake its greatest transformation on a Swedish dairy. The motivation was to increase its geographic presence and competitiveness within the Nordic countries. But it was also to comply with a fast growing development in technology from mechanical to automatic filling lines.

THE BOTTOM LINE

69% increased uptime on critical empties on the prototype line and resulted in increased uptime on 10 filling lines. A further 15% increased line efficiency equivalent to a total of 100m DKK per year.

CASE 8/9

FROM CAPACITY EXPANSION TO CONSOLIDATING VITAL RELEASED CAPITAL

Capacity expansion plans had been going on for 2 years with internal recommendations to invest in a new 10,000 square metre warehouse. In the first phase, the client sought verification on two important regional warehouses.

It was recommended externally to postpone investment in additional storage capacity for at least two years. Analysis showed that reduced turnover over the previous 7 years in several areas had created a need for more capital in the business. Therefore consolidation would be a better solution and the second phase was set in motion.

Thorough preliminary analysis it illustrated that it could be simplified in several areas. These were within order and purchase processes, transport and logistical processes and an adjustment in the form of organisation in all areas both centrally and locally.
In the third phase, a project was undertaken with a design on solution options and a development process with a potential to save 50m DKK.

For further information, contact us at:
(+45) 29 26 65 09 – info@pdp.dk

 

ABOUT THE CLIENT

Our client is a large German international enterprise dealing in systems for the construction industry. As a new CEO came on board a new strategy was launched with the focus on, amongst other things, simplification and to increase income. At the same time, there was a central investment desire to expand and incorporate greater storage capacity in Germany. The Vice Chairman for the business area had a gut feeling and wanted this requirement to be confirmed.

THE BOTTOM LINE

The capital released amounted to 7m DKK. Storage space released >30%, postponing investment, decision and execution plans in respect of consolidating 2 to 1 regional storage facilities in Germany.

CASE 9/9