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CASE STUDIES

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Business Sector: Transport/Logistics

Benefits Retention of customer valued at AU $15m pa.
Problem Identified Large commercial deliveries outside Service Level Agreement, threat of losing major customer.
Length of Project Eight weeks to implementation across the business.
Total Cost to Implement AU $0.1m first year then AU $0.00m each following year.

This Continuous Improvement opportunity was staffed by two Pragmatic Improvement specialists to identify the causes of lost time. Identification and implementation within the agreed timeframe prevented a key customer from moving to a competitor. Process mapping, value analysis, lead time analysis and flow optimisation were part of the tool set utilised to increase productivity rates.

 

Business Sector: Financial

Benefits Overall internal turnaround time in processing has improved by 84%, significant defect rate reduction also achieved. AU $0.25m benefit recorded.
Problem Identified Accuracy in meeting Customer Requirements.
Length of Project 14 weeks to full implementation across the business unit.
Total Cost to Implement Three internal employees and one Pragmatic Improvement Master Black Belt over a 14 week period.

The improvement of internal processing by 84% has seen increased customer satisfaction in service turnaround time and reduction of complaints (not included in cost benefit). Employees have moved onto their next Continuous Improvement project further building ongoing internal capability. Substantial process simplification around specific defect root causes delivered excellent results.

 

Business Sector: Mining

Benefits Documented as US $0.23m pa.
Problem Identified Demurrage charges applied when transport loading and unloading exceeds the Service Level Agreement. Cause generally accepted to be related to a limitation of the discharge capacity.
Length of Project 12 weeks to full implementation.
Total Cost to Implement Nil capital cost, internal employee costs.

The internal project leader was Black belt trained by Pragmatic Improvement and has now delivered a second project which will save the Company US $0.23m pa. This brings the project leader's individual accumulated benefit to over US $0.5m. First project delivered US $0.30m pa.

 

Business Sector: Information Technology and Telecommunications

Benefits Documented as AU $0.3m pa.
Problem Identified Long cycle time leading to multiple enquiries, customer complaints and churn.
Length of Project Ten weeks to full implementation.
Total Cost to Implement Nil capital cost, internal employee costs.

Customer complaints well exceeded company target. Analysis identified the largest cause of complaint as being a huge variation in cycle time to install service with an average of 21 days.

An improvement project team was established by a Pragmatic Improvement trained Lean Green Belt, which evaluated the existing process to identify and remove bottlenecks and non-value-added steps, also focusing on capacity and forecast balancing. The changes made have resulted in the cycle time average being reduced to 3 days with very little variation in the process.

 

Business Sector: Information Technology and Telecommunications

Benefits Documented by client at AU $15m pa.
Problem Identified Revenue leakage incorrectly applied product rebates.
Length of Project 36 weeks to full implementation.
Total Cost to Implement Nil capital cost, internal employee costs.

Complexity of the billing process and multiple product combinations produced complex customer billing. The project team, led by a Pragmatic Improvement trained Black Belt, conducted in-depth analysis of billing processes focusing on enquiries and adjustments. This analysis indicated that the majority of enquiries related to billing errors or misunderstood charges rather than products or services. Significant product simplification, customer migration and bill format simplification reduced enquiries, adjustments and reduced incorrectly applied rebates.