This challenge consisted of upgrading a basic railroad equipment manufacturer to a product and solutions provider. The scope involved a common manufacturer working from drawings for the French national railways, to deliver parts under quality supervision from our client.
The project completed specific key actions that consisted of:
- Developing a quality management system to be certified as designers by major train manufacturers and to work on quality assurance for their deliveries.
- Devising a back-up quality process with a project cost management system to ensure profitability and margin increase.
- Integrating a design office, previously outsourced, to place development under company management.
- Outsourcing and decrewing of the machining workshop by implementing vendor quality management and cost control.
- Implementing a global design approach with early involvement of suppliers in the project design to maximize margins on projects.
- Implementing a manufacturing ERP to manage operations for financial control of the activity (customers overdue, management of suppliers, financial KPIs).
Outcomes were significant, with a turnover increase from 35 to 56 MFRF in 5 years. Staffing was reduced by 20%, and profits went from 3.5% to 6.5% of turnover.