Scope

Volex Wiring Systems (VWS) is an integral part of the global £250M Volex Group of companies operating in Europe, America and The Far East.

VWS produces very sophisticated, multi-drop harnesses used in commercial vehicles, off highway and aerospace applications – it also in addition manufactures wiring harnesses for medical and industrial markets.

Headquartered in the UK with manufacturing capabilities in Eastern Europe, the Far East as well as the UK, it designs, manufactures and services for first and second tier OEMs across the world – employing over 500 people.

We were invited to work with the senior management team to create an improvement process assessing current performance from both an external and internal perspective, report that back into the organisation and then develop or adjust strategies to improve external focus, enhance revenues and increase margins. The main drivers for the improvement process were to deliver increased bottom line performance, align the business and operational strategies, establish a series of benchmarks to base improvement on and overall establish a sustainable way of operating.

Approach

The first stages ascertained the current situation using a series of in-depth customer interviews, a detailed analysis of the cost of waste and selected interviews of VWS employees.

Armed with this understanding, a series of intense workshops followed for all management levels aimed at building a comprehensive 5 year business plan. This covered all aspects of the business, including strategies for customers, markets, financials and organisation.

To involve and ensure sustained momentum a comprehensive training and communication initiative was then cascaded throughout the organisation.

Benefits

The net effect in the first 12 months produced a reduction in the first year of 37% in the cost of waste and an increase of 10% in production efficiencies, whilst revenues grew by 11% in difficult trading conditions.

The first 12 months delivered:

1. A Customer review mechanism, which measures all aspects of customer performance both tangible and intangible deliverables
2. Cost of Waste is now routinely used as a management metric, and a key driver for improvement
3. Specific projects were identified which addressed product quality, factory and product relocation and re-engineering of key processes.
4. Over 500 local issues were addressed
5. Cascaded into other divisional manufacturing locations
6. Assisted in promoting VWS to its customers – as a key differentiator

Robert Jones – Divisional Managing Director of VWS commented that this process “It increased our customer focus which led to significant emphasis on continuous improvement. We engaged all our people in this process and this improved communication and a sustained focus during a period of rapid and continuing change”

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