Contact UsCase Studies Abstracts
The very foundation of E-21 System lies on the below described case studies. The common characteristic is that Outperformance Quality Dynamics methodologies were applied in all of them.
List of CSs
| OXAL (2008-2009) | Nbr.14 | Geographical, industry, and headcount setting | Abstract |
| Mexico (2008-2009) White goods & Home goods; 279 |
Company with a large tradition in the market (founded in 1972). Despite its more than 30 years in the market, no standard processes are defined, and growht is based on customer demand, but not on a proactive sales strategy. The challenge of this project is to achieve a profound level of institutionalization and professionalism. | |
| Situation | Achieved Results | |
| § A complete lack of leadership § Teamwork is not existent § Decision-making process depends on a single person (general manager) § Staff turnover is above 60% § Customer satisfaction of biggest portfolis, in terms of quality and leadtime, is around 50% (where more than 95% is required). Therefore, there is an imminent risk of loosing a very significant share of income § Productivity is below needed, and competitiveness (in terms of price and lead time) is below expected by the main customers § Fixed costs are excessive; break-even point is not controlled |
After 6 months § Return-on-investment of the project is over 100% § Staff turnover ratio is below 2.5% § Productivity increased 250% § Fixed costs are reduced, giving control over break-even point § Decision-making process is no longer dependent on a single person; teamwork is a widely spread best practice After 9 months § Assessment of performance by the main customers reaches 100% ratio on a sustained way |
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| CYESA (2007-2007) | Nbr.13 | Geographical, industry, and headcount setting | Abstract |
| Mexico (2007-2007) Automotive; 435 |
Supplier for major car builders, such as VW and Ford. Being 4th on the ranking of the 'Top 10 Worse Suppliers' makes very difficult to work properly, because of the great and continuous performance needed by car builders. The great number of issues to be fixed (some of them very critical and on a very bad position), as well as the short time to give some results, constitute the biggest challenge of this project. | |
| Situation | Achieved Results | |
| § Not defined mission, vision and values § Not defined chain of value § Not defined critical factors § Information system is formed by several not intertwined applications; data collecting process is not managed with the same criteria § Performance assessment is not based on metrics § Decision-making process is not structured and fully dependent on the general manager § Financial situation is very critical; losses above 20% last 4 years § 90% Revenues depends on one customer; which is very dissatisfied § Concepts such as leadership or teamwork are completely strange to the management § Staff turnover is above 60%. None personnel policy exists § Internal communication is nonexistent; the external one is cause of great customer disatisfaction § Quality is based on a non-applied mass inspection process; mass re-work is widespread. § No Sales department, process or staff exist § Maintenance is not co-ordinated § Productivity is neither controlled nor measured § Some very specialized processes without any training program § Lead time is the worst among the VW (90% income) suppliers in Mexico |
After 6 months § Data available begin being reliable; financial results can be analyzed § Staff turnover is reduced to less than 5% (average). A management team is built, and decision-making process starts becoming less dependent of a single person. After 9 months § The company is out from the 'Top 10 Worse Suppliers' ranking. Deliveries and quality are not anymore an issue. § Break-even is measured. Financial variability is under control, and with a positive trend. Losses stop. § Lead time is under control and with a positive trend. Optimal value is near to be achieved. |
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| Graphopak GDG (2005-2006) | Nbr.12 | Geographical, industry, and headcount setting | Abstract |
| Mexico (2005-2006) Printed folding boxes for packaging ; 277 employees |
The company is not able to make profit since its acquisition by the new managers, despite both their experience in the industry and a continuous increase in sales (more than 50% each 6 months). After 1 ˝ year, the balance gives a situation near bankruptcy. | |
| Situation | Achieved Results | |
| § Corporate leadership is not established. § Teamwork and communication between departments are nonexistent. § Data collecting is not managed with a unique criterion. § Quality is based on mass inspection. The production process gives a waste of 26% over the total produced. § There is no one standard procedure, neither defined nor implemented. § The unique criterion of Sales department is ‘to sale’. § Productivity is neither measured nor controlled. § Very specialized processes without any training program. |
After 2 months: § Waste of finished product shrink until a range between 5 % and 3%. After 4 months: § Leadership was clarified and developed, leaving the typical Mexican style. “Supervisors” culture is replaced by a “Facilitator” culture. § Teamwork became a compulsory practice for everyone within the organization. § Data was essential foundations of an integrated information system, designed by the employees themselves. § A unique Value Structure Workflow unified the work process of everyone within the organization. § Productivity and costs achieved a high priority in all agendas. § Training take place four days a week in the corporate calendar After 6 months: § Waste of finished product shrink until a range between 3 % and 2%. § Delay over agreed lead time with customers reduced from 85% to 3%. |
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| Ediciones Altaya (2004-2004) | Nbr.11 | Geographical, industry, and headcount setting | Abstract |
| Spain (2004-2004) Publishing (part of Planeta-Agostini Group);; 290 employees |
A very successful company dedicated to the collecting editions. Their main purpose was to maintain the competitive advantage achieved during the last years. The greatest challenge of this project was to understand the process of embracing new and different knowledge within a family business managed by a hierarchy style. | |
| Situation | Achieved Results | |
| § Very profitable company, part of one of the largest publishing groups in the world § Benchmark in their business § High motivation to know the integrating elements of competitive advantage |
After 9 months § Clear awareness of what competitive advantage is. § Capability to improve team member relationship and teamwork. § Capability to evolve the organization’s structure. § Capability to develop innovative techniques of analysis and research. § Continuous improvement was embraced as best practice. |
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| Esilog (2003-2003) | Nbr.10 | Geographical, industry, and headcount setting | Abstract |
| Spain (2003-2003) IT consulting; 20 employees |
A small company founded by four friends with high intellectual profile but small business experience. The main purpose of this project was to build a leader organization in the business sector of IT services. | |
| Situation | Achieved Results | |
| § Very high intellectual profile of the staff § Very skilled people on IT § Small turnover after two years from start-up § Small business experience |
After 12 months: § Business diagnostic for a 1 ˝ year period, demonstrating why the organization will not be able to achieve its goals. |
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| Campos (2001-2002) | Nbr.8 | Geographical, industry, and headcount setting | Abstract |
| Spain (2001-2002) Pre-fabricated elements for buildings; 15 employees |
A small workshop with a clear opportunity to have a product to become supplier of a great market. The main purpose of this project was to demonstrate the potential of E-21 System whenboth business size and culture are very low. | |
| Situation | Achieved Results | |
| § Few customers and incomes; very small business size. § Poor business culture. § Big debts § No profits for years. despite high skills |
After 12 months: § Business management culture is embraced § Productivity increases in 60% (with an increasing trend) with a workforce increasing of only 5% After 24 months: § The biggest construction companies start becoming customers § Revenues increases 200% |
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| KPS (2000-2001) | Nbr.7 | Geographical, industry, and headcount setting | Abstract |
| Spain (2000-2001) Motorbikes supplies assembly; 200 employees |
A medium company with a great reputation of quality work that allows them to become exclusive supplier of the biggest motorbike manufacturers (such as Honda and Yamaha). The main purpose of this project was to reduce costs and increase profitability, in order to be competitive in automotive sector. | |
| Situation | Achieved Results | |
| § In 1 year (1998), loose 60% of incomes. § Next year (1999), loose 10% of incomes. § Big debts with banking (all liabilities) § Bankruptcy during 3 years. § Assets: 685.000 $ § Liabilities: 1.050.000 $ § All family inheritance underwriting debts. § Dependence of a big manufacturer (Honda) with a contract very strict for company. |
After 6 months: § Profits After 12 months: § No more dependence of an unique customer (contract negotiation) § 60% of increasing productivity; improving 10% the Japanese matrix company § Free inheritance from underwriting § End of activity with more than 1.000.000 $ of cash-flow |
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| Izi Lack (1999-1999) | Nbr.6 | Geographical, industry, and headcount setting | Abstract |
| Spain (1999-1999) Industrial paint; 180 employees |
The main purpose of this case was to guarantee the capability of increasing both profitability and growth. A special work on both Leadership, as part of Efficiency factor, and Coherence was carried out. | |
| Situation | Achieved Results | |
| § A very innovative technology § High growth from the first year § Need to organize properly the company, in order to face an exponentially increasing demand |
After 3 months: § Business diagnostic for a 3 years period, demonstrating why the organization will not be able to maintain its previous ratings of growth and profitability |
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| BM2000 (1999-1999) | Nbr.5 | Geographical, industry, and headcount setting | Abstract |
| Spain (1999-1999) Modern furniture; 100 employees |
The main purpose of this case was to demonstrate the capability of E-21 System to help building new organizations. A special work on Coherence and Asynchrony, as some of the Sustainable Viability Factors was carried out. | |
| Situation | Achieved Results | |
| § Start-up in a saturated market § The need of an efficient plant layout was limited by a previous old production plant § Limited investment capability |
After 7 months: § 5% Market share § Self financing § Analysis and development of a complete information system, based on OQD methodologies § Business diagnostic for a 2 years period |
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| Teistor (1997-1998) | Nbr.4 | Geographical, industry, and headcount setting | Abstract |
| Spain (1997-1998) Wooden banisters; 50 employees |
The main purpose of this case was to increase productivity and to reduce costs. A special work on Quality and Efficiency, as Sustainable Viability Factors, was carried out. | |
| Situation | Achieved Results | |
| § First position in market § Very good brand image § Very good quality product § Continuous growth needed an organizational improvement due to poor management skills § Profits decrease and costs increase in an exponential way |
After 3 months: § Product costs decrease a 35% in average § Productivity improves a 70% After 6 months: § Net profits increase to 28%, in an increasingly trend |
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| Curvasan (1997-1998) | Nbr.3 | Geographical, industry, and headcount setting | Abstract |
| Spain (1997-1998) Curved wooden furniture accessories; 60 employees |
Costs and market recovery were the targets on this case. It was necessary to recover the company from a very bad business position, after an associate left the company with all the sensitive information. A special work on both Quality and Efficiency, as Sustainable Viability Factors, was carried out. | |
| Situation | Achieved Results | |
| § Unique company dedicated to produce curved wood goods in regional market. § Profit margins upper 150 % § Production manager left company with all information (prices, customers, etc.) and applying a 100 % price reduction in a new company. § Loose 80 % customers. § Substantial looses conducted to bankruptcy. |
1st Year: § Recovery ob both market share and business turnover 2nd Year: § Profits § New plant building to increase the product demand |
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| TIBS (1997-1997) | Nbr.2 | Geographical, industry, and headcount setting | Abstract |
| Spain (1997-1997) Wooden banisters; 40 employees |
A bankrupt company with a product leader in their business sector. None consulting company was disposed to help them. The main purpose of this case was to demonstrate the capability of E-21 System to refloat organizations from the worst business situation. | |
| Situation | Achieved Results | |
| § First company dedicated to automate the production of wooden banisters. § Profit margins upper 70%. § The most qualified employees left company, creating two new companies, applying drastic price reductions. § A reaction based on quality reduction conducted to a complete damaged image. § Substantial looses conducted to bankruptcy. |
1st Year: § Recovering of company image § Recovering and increasing of market position § Profits |
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| Els Plans (1996-1997) | Nbr.1 | Geographical, industry, and headcount setting | Abstract |
| Spain (1996-1997) Furniture accessories; 40 employees |
A very low productivity was the main problem of this company. After the acquisition of very sophisticated machinery, the problem was not solved. The challenge of this project was to demonstrate that, without investment in machinery, productivity can achieve upper than usual levels of performance. | |
| Situation | Achieved Results | |
| § Low productivity § One customer dependence § Poor profitability for years |
1st Year: § Increase productivity in 541 % § Increasing profits trend |
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