CZ LOKO is one of the most important companies in Central European railway engineering. It has its own know-how in the field of production, modernization and repair of traction and special rail vehicles. It is a company based on the traditionally high level of the Czech railway industry. It sees its future in innovation and comprehensive services.
The Client’s Need
In order to have sufficient resources for innovation, the company decided to pay high attention to internal efficiency, which it monitors through profitability. In 2017, the management set the goal of doubling its profitability within two years. Our task was also in this spirit: Show the people in the company the way and change their thinking so that the company can fulfill the ambition of double profitability.
How we proceeded
In the first step, we focused on the analysis of the main process = the process of order execution from the handover of the business case to the handover to the customer. We used the "brown paper" method, where we mapped the process as it works today.
Subsequently, we identified weaknesses, which we verified with the owners of individual processes, and we defined the necessary corrective measures, which we prioritized over time.
Together with the management, we revised and simplified the strategy and focus of the company.
Poté jsme začali u procesů: přijetí poptávky, její zpracování, tvorbě nabídky a plánování. Jedná se o procesy, kde obvykle vzniká nejvíce pozdějších transakčních nákladů.
Then we started with the processes: receiving a request, its processing, creation of the offer and planning. These are the processes where the most subsequent transactional expenses are usually incurred.
We continued to change procedures and processes in operational and strategic purchasing and in the technical preparation of production.
We devoted a lot of time to the work of foremen in production while realizing of orders and while maintaining compliance requirements for product quality. This was also related to a detailed evaluation of the improvement of monitoring outputs.
At the same time, we focused on the development of senior and middle management to incorporate the correct procedures and be their supporters and guarantors.
We implement similar projects with an agile approach. We continuously evaluated our progress and adjusted the priorities of cooperation as desired goals were achieved. Managers from the company received a number of procedures, diagrams, instructions and tools from us to have enough resources to implement the change.
After the completion of the main part of the project, we focus on ongoing follow-up activities according to the client's wishes and complete the academy for masters.
Benefits for the Company
Our financial reward was linked to the fulfillment of a specific target in the area of profitability. The target was exceeded.
- Revision of the company's strategy, its simplification and targeting
- Reordering and interconnecting internal processes and strengthening cooperation throughout the company a posílení spolupráce napříč firmou
- Moving forward the Material Technical Base, Planning and Production areas
- Significant changes in the management style of the company
- Development of middle management
- Fulfillment of the order portfolio for several years in advance
- Increasing the profitability of internal processes
