The global project of an automotive supplier is completely non-transparent, the economic goals have been lost sight of.
As a backup to the division management (CBU), you need a business person who can bring immediate clarity and ideas for improvement as an outsider.
Company
Parent company
- Turnover approx. EUR 20,000 m
- Employees approx. 25,000
Deployment company
- Sales approx. EUR 800 million
- Employees approx. 90
Initial situation
US conglomerate has won the first major international project of a German OEM. The project situation shows significant gaps in results, negotiations with the customer about changes are not completely comprehensible and unclear. The general manager in charge has been changed. Other projects in the unit similarly show an unclear situation in terms of outcome and status.
My approach
- Creation of transparency in the current and the new global projects (status internal / coordination with the customer, costs, risk management)
- Introduction and use of a change management process: sales and engineering / project management
- Costing model development, coordination internally and with the customer
- Preparation of a decision basis internally for customer presentation
Successes
Based on a waterfall analysis for all relevant car lines, the
- agreed
- current
- achievable
Status shown and systematically tracked and 80% achieved (agile management)
Renegotiation:
-
- Analysis of the agreed scopes and additional expenses
- Escalation meeting with customer: global customer acceptance of additional CAPEX and costs of approx. EUR 300 million for the current program (cash flow positive)
- Significant customer price increase led to positive EBIT
Significant improvement in earnings without jeopardizing customer relationships
Customer satisfied, HQ satisfied (win-win)
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