issue
operational effectiveness
Strategic Cost Management for a Telecommunications Company
Client Problem
- A division of major telecommunications company
- Generating lower margins than overall business and competitive analogs
- Need to identify key areas for focused cost reduction in operations center
Project Objectives
- Identify specific cost gaps and key drivers
- Develop specific, detailed programs to realize cost savings potential
- Assist management with implementation and prove demonstrable results
Approach
- Benchmarked operation to identify, size, and determine root cause of different operational performance gaps
- Performed process defect and productivity variance analyses in the work center
- Created new management tracking system (using existing computer systems) to focus on productivity variance issue
- Provided accurate workload forecasting and balancing
- Effective order and productivity tracking
- Data for focused improvement programs for low performers
- Worked daily with operating managers to conduct trial of new management system
- Proved system integrity and improved management practices
- Realized productivity improvement in excess of 35%
Results
- Identified cost improvement opportunities of 20%
- Improved productivity variances by 2x across all functions
