Customer : Recruitment SaaS
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Scenario
- The company was dealing with relatively high cost of quality and wanted to implement strategic measures for lowering expenses without resorting to short-term cost cutting. This required a significant re-think of strategic goals and operational procedures.
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Challenges
- To transition from a short-term cost cutting approach to a long-term optimization focus necessitated a cultural realignment and a re-think of existing operational procedures.
- The changes (cultural & procedural) needed devolution at a departmental level thereby creating a pan-organization consistency of approach.
- Involvement of suppliers and OEMs was important to the optimization initiative.
- The rejigged operational procedures need to conform to the standards of OpEx (Operational Excellence) and LEAN methodologies.
Above all, the entire initiative needed to be governed via a framework that ensured visibility and transparency of actions.
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Data Points
- At the start of the exercise, the cost of quality was approx. 35% of revenue.
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Solution
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SmartPlaybooks in conjunction with partner Avanulo deployed a comprehensive yet customizable suite of playbooks to compliment the redesigned processes:
These covered:
- Planning & governance – for periodic renewal of goals and actions and ascertain responsibilities
- Budgeting & oversight – to manage departmental budgets, approvals and reporting
- Participation of vendors and suppliers – to handle delivery of supplies & components per JIT methodology and streamline dependencies.
- Review & analysis – to ensure that oversight rigor was established
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Inter-departmental & inter-organizational coordination
- Playbooks incorporating tasks across functions (and 3rd party organizations) were structured which allowed for an integrated approach.
- Handover of tasks between functions which had sequential dependencies were designated as milestones (to be alerted on in case of delays).
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Real-time visibility as opposed to out-of-date information
- 360* view of data for analysis of cycle completion times along with identification
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Results
- The cost of quality was brought down by 10% over the first four months.
- The cost of saleable goods was brought down by approx. 53% over a 12-month period.