Proactive problem-solving:

Akzo Nobel Surfactants

Faced with looming overcapacity on the European market, the Akzo Nobel Surfactants multi-product plant at Stockvick (Sweden) saw the need to cut costs and boost performance proactively, to free up capacity for greater flexibility, establish clearer communication between management team and shop floor, reduce perceived stress and bolster delivery reliability.

On the basis of earlier successful cooperation, manufacturing manager Bo Lindberg contacted ARV Group.  Together with local management, the optimal material flow through the plant was designed, with an eye to reliably fulfilling customer demand at the lowest possible cost while making maximum use of all available resources. A new way of planning had to be designed and implemented: the "Futurum" project was born.

Targets established

Attention also focused on improvement potential within the maintenance organization. Together with maintenance personnel, realistic project targets were established and dominant cost-drivers were identified. Projects and their contribution towards reaching the targets for cost-performance improvement were defined and described.

Main project scopes were eliminating maintenance work that did not contribute to production needs and or HSE compliance and the optimization of conditions to allow mechanics to work in the most efficient manner (more effective maintenance work per hour). In the end, capitalization was achieved via a reduction of external labor resources.

In the process, Stockvick gained additional insight into its own capabilities, sales forecasting became more reliable and representatives from production, logistics, QC, maintenance, planning and purchasing analyzed information-need throughout the plant.

Fast cost-performance improvements

Initially, ARV Group consultants took the lead to help facilitate fast cost-performance improvements. Meanwhile, experience was being developed in basic project and change management. As a result, initiative could shift more and more towards the shop floor itself.  The support provided by ARV Group changed from directing to challenging, and to coaching people while bringing in expertise.

Within a timeframe of six months, the organization was on its way from a reactive 'firefighting' organization to a pro-active, problem-solving organization. Cross-functional interaction had emerged, and barriers between departments were coming down.

Technical manager Lars Goran Jönsson: "ARV Group helped us to identify the right ideas, with a cost and performance focus, and guided our people in effectively implementing them. Within six months, we had achieved a substantial reduction in our maintenance costs and improved the way we worked together".