METHODOLOGY: FIRST STEPS TOWARDS A STRONGER SUPPLY CHAIN Dantherm engaged Valcon to help them identify and realise the potential in their supply chain, and an end-toend assessment was initiated using the following approach: Scenario calculations Business case and input for implementation plan 1 External conditions 2 Goals and strategies 3 The supply chain task 4 The ideal supply chain system 5 Implementation Workshop 1 Analysis & diagnostics Workshop 2 Design & evaluation Workshop 3 Planning & implementation Figure 1. Valcon’s end-to-end diagnostics of potential in Dantherm’s supply chain The supply chain diagnostics identified a significant potential for annual EBITDA improvement. This was based on full-year implementation in the Danish factory in Skive alone. Valcon’s end-to-end diagnostics later included support and realisation of identified improvement potential. Q4Year 1 Q1Y-2ear 2 Q3Y-4ear 2 Q1Y-2ear 3 Q3Y-4ear 3 DIAGNOSTICS Based on diagnostics, defined target to improve EBITDA by minimum 25% through 10 identified improvement areas SPRINT ONE Reduced lead times and increased production efficiency by 15% SPRINT TWO Updated organisational structure, improved production plan adherence from 80% to 90% and labour cost ratio by 9 percentage points INTEGRATE Plan adherence increased by another 5% and efficiency by 20-30% LEVERAGE Additional improvements on 2 remaining product lines and reduced assembly time by 39% and component costs by 8% Figure 2. Timeline for Dantherm’s efficiency improvement in production • The first workshops with analysis and diagnostics led to several work packages defined in cooperation with local management • The work packages were formulated into Sprint One, which took place in Year 2 • The focus during Sprint One was on eight assembly lines out of 12, and the main tasks included: • Create transparency • Focus on plan adherence • Clarify roles, responsibility and accountability for team leaders and managers • Implement line balancing on assembly lines 4 5
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