CHEMICALSINDUSTRY

IMPROVING YOUR RESULTS TODAY, SECURING YOUR RESULTS TOMORROW

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The global chemical industry is experiencing deep transformation. E lements dr iv ing this are for example the emergence of new, low-cost energy and feedstock appearing in the marketplace and creating the imperative for regional re-alignments/changing the landscape of growth markets. Also increasing commoditization of products and stronger regulation is putting pressure on margins and forcing organisations to explore new routes to safe-guard profitability. At the same time, major trends e.g. in nutrition, environmental sustainability and health are opening new possibilities for advanced applications and profitable sectors.

It is overall a time of continued disruption, but at the same time also an opportunity to generate long-term value for those companies finding the right answers.

From our experience in this industry we know that there are some key questions Chemical companies are dealing with:

• How to set up key functions like e.g. Maintenance in a way that optimizes cost, but at the same time ensures asset reliability and mechanical integrity?

• How to deal with higher complexity of the Supply Chain – driven by higher expectations on service levels whilst simultaneously experiencing pressure on working capital & manufacturing efficiency of batch/continuous processes?

• How to use Operational Excellence to also support EHS ambitions/how to make this “one agenda” and really embed it in the organisation?

• How to establish a “glocal” infrastructure for change which can be used to sustainably and

continuously improve overall operational performance – achieving results today AND tomorrow?

• How to manage innovation in an agile way to be able to respond to the need for specific/differentiated solutions (incl. provision of professional process technology support as a full solution provider)?

• How to attract & develop talent in the organisation and nurture a leadership culture which engages the people (starting from crucial shift leader function all the way to top of the organisation)?

• How to adapt the inherited Industrial Footprint (e.g. after acquisitions) in order to prepare for future market requirements/respond to regional shifts in the market?

• And last, but not least: how to make sure that you effectively take along your organisation on the transformation journey and successfully tackle the Human Dynamics?

We believe that a partner in this industry must have a profound understanding of what these challenges practically mean in the context of a chemical industry

environment and must have a clear idea and experience of how to approach them.

On the following pages we have articulated what we believe are relevant support clusters illustrated with practical cases of how we have helped our clients to tackle these by working in tandem.

If you feel that those elements talk to challenges that you are facing, we would be very happy to discuss your progression journey and how we could be a partner for you.

“Increasing commoditization of products and stronger regulation is putting pressure on margins and forcing organisations to explore new routes to safe-guard profitability”

Ourperspectiveon theChemicalindustry

Your progression is our obsession

Founded in 1980, EFESO Consulting is a global management consultancy firm specialised in ensuring the Perfect Execution of the Progression Strategy across the Client ecosystem.

Over 400 consultants, operating from 26 offices, working in over 75 countries and representing more than 40 different nationalities currently support more than 900 progression programmes working in Tandem with our clients.

Our Progression motto “Improving your results today, securing your results for tomorrow” means achieving business results faster and building the capabilities to continue to improve faster than competition.

The progression approach delivers results and capabilities working at 3 levels, first at strategic level to anticipate and deploy, second at systemic level to connect the organisation and build the winning routines in terms of capabilities, leadership, engagement and behaviors and, last, at specific level to build collaboration and involve everybody in executing the actions orchestrated in the plan.

“Improving your results today, securing your results for tomorrow” is possible only when all the 4 Dynamics that determine the company progression are addressed at the same time:

Value Dynamics - Where and how we create and capture more value (e.g. keeping a clear link between strategy and actions asking all the time which value the company programmes and projects are bringing to the shareholders and stakeholders)

Flow Dynamics - How we generate more value developing the tools, methodologies and systems to improve the performance and results of the key value chain processes in terms of flow effectiveness

Asset Dynamics - How we generate more value developing the tools, methodologies and systems to improve the performance and results of the key value chain processes in terms of resource efficiency

Human Dynamics - How we develop and motivate human capital enabling our clients’ organisation and leadership to adopt the new values, mind-sets and behaviors needed to successfully drive the new processes

Our people bring together hands-on experience and expertise spanning a wide range of sectors and functional capabilities.

The success of the EFESO approach is reflected by our 90% client retention.

“Coming together is a beginning, keeping together is progress, working together is success” - Henry Ford

For more information check our website: www.efeso.com

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Chemicals solution overview

We help organisations to deal effectively with one of the most important enablers for performance improvement: the Human Dynamics. Working from topfloor to shopfloor we help to engage the organisation on the change journey.

• Adoption - Leadership and workforce mobilization (vision deployment and operationalization, communication strategy, mobilization events)

• Leadership - Leading Performance (leadership values and behaviors, high-impact moments, coaching and facilitation)

• Anchoring - Performance Behaviors (from shopfloor to topfloor: Performance Control System, Visual Management & Obeya room setup & coaching)

Human Dynamics

We help organisations to get the most value out of local and global operations by focusing on physical assets and industrial footprints to optimize the full lifecycle and set the framework for higher productivity and safety – taking the most important asset along: the people.

• Operational Excellence (TPM, maintenance & operations excellence, WCOM™, Advanced process excellence/Lean Six Sigma & yield management).

• Lab Excellence (levelling strategy, performance & visual management, standard work).• Integrated Asset Management (capital deployment process, asset lifecycle management).• Program Management Office & Digital Knowledge Management (portfolio & resource management,

intelligent knowledge databases).

World Class Operations Management

We help leaders in all aspects of organisational effectiveness – including designing the organisational structure, developing high performance teams and structurally develop the human capital.

• Organisational design (organisational assessment & design, shared service organisation)

• High Performance teams (team mobilization and collaboration events, creating balanced profile of teams incl. DISC profiling, Belbin assessments etc.)

• Human Capital Systems (talent acquisition and development/management)

Organisational Effectiveness

We work on all the value creation levers to deliver revenue increase, cost reduction and assets/ cash efficien-cy. We do this by identifying and eliminating “losses” and non-Value Added activities and by optimizing and synchronizing critical dynamics in the value chain.

• Value Chain Improvement (complexity reduction, customer/ supplier synchronization, route-to-market)• Integrated Business Planning (S&OP progression, supply chain performance management)• Working Capital Optimisation (inventory balance, order-to-cash improvement)

World Class Supply Chain Management

One important key to focused change is linking the corporate vision to daily reality. We help management teams to translate business strategy into concrete deliverables that impact operational performance and result in clear cost savings/lines of growth.

• Operational Strategy Alignment (operational strategy challenging & benchmarking (how “ready to go?”), leadership alignment & mobilization sessions)

• Operational Strategy Deployment (Operationalize strategy (progression roadmap), strategic initiatives management)

• Industrial Footprint Re-design (strategic make-or-buy, footprint rationalization)

Operational Strategy

We help organisations to assess and develop end-to-end innovation capabilities, as well as improving operational performance in R&D and new product introduction (NPI) processes.

• Lean/agile development (SCRUM methodology, stage-gate process, Obeya room for Innovation and visual management)

• Feasibility and portfolio management (Pipeline optimization/balancing, portfolio strategy and rationalization)

• Early equipment management (vertical process start-up, advanced project management for Engineering)

World Class Innovation Management

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Delivering tangible business value

CLIENT SITUATION & APPROACHOur client is a provider of polyurethane foam and polyurethane adhesives and epoxy resins. The organisation was facing an increasingly competitive market environment, where only con-tinuous innovation was helping to protect margin levels. We supported with:

• Development and implementation of objective evaluation systems of ongoing development projects

• Review and re-prioritization of the development project portfolio to focus resources

• Training in SCRUM methodology and coaching of application (incl. visual planning boards, SCRUM sprint approach)

• Design and setup of management system to steer progress of development projects and evaluate/initiate new projects when required.

RESULTS:• Reduction of development project time by more than 80% • Increase of OTIF level of projects by more than 30%• Significant increase of successful completion level of

development projects.

World Class Innovation ManagementLean/agile development

CLIENT SITUATION & APPROACHThe client is a global producer of natural gas-based fertilizers and industrial chemicals, employing around 3000 people. Confronted with an ageing work force at the sites, ageing work force at the sites, increasing environmental regulations, internal pressure to reduce safety risks and need to improve the plant performance a Behavior Excellence initiative was launched in 1 key site in the Netherlands as a blueprint.

RESULTS:• BAS (Behavior Analysis System) score of Effective leadership

skills and behaviors increased from 25% to 65%.• Reduction weight variation packing department from 10 %

variation to 2% variation.• Sustainable and tangible process improvements realized

leading to significant benefits (e.g. increased volume, increased First Time Right quality, improved safety indicators).

• Effective performance management and dialogue established throughout all layers of the company.

• Improved ability to conduct transformation programmes at the sites with limited resources from external parties.

Human DynamicsPerformance behavior

CLIENT SITUATION & APPROACHOur client is a global leader in thermoset resins serving aero-space, energy and automotive markets. The organisation deter-mined ambitious targets to improve safety, reliability & cost effec-tiveness. A Manufacturing Excellence programme was launched to sustainably drive change and achieve those targets. Key ele-ments of the programme:

• Creating an infrastructure for change through training & coaching of change agents

• Simple and practical solutions rolled out into the sites around dimensions of Process Excellence, Performance Mgt. and People Engagement (e.g. 5S, visual management, OBEYA- room, leadership development and Gemba-walks).

RESULTS:• Data-driven decision making and effective management of

performance is now the norm at sites• Local and enabled change infrastructure established – from

topfloor to shopfloor• Sustainable and tangible process improvements realized

(reduced downtime, avoided product contamination).

World Class Operations ManagementOperational excellence

CLIENT SITUATION & APPROACHOur client is a globally leading player in the Life Science and Materials sector. Facing a situation of geographic demand shifts and changing demand patterns, there was the need to reconsider the Industrial Footprint of production & Supply hubs and by this prepare for the future/protect ROCE targets. We supported in:

• Co-development of a customized Industrial Footprint redesign methodology (BOS - Business Operations Strategy)

• Build-in engagement & high-impact moments for the leadership team in the approach to ensure ownership

• Develop new Industrial Footprint for 4 Business groups – in the beginning EFESO being in the lead + then gradually handing over to internal consultancy group which was involved from the start.

RESULTS:• Industrial Footprints developed for 4 business groups with

significant savings determined• Internal consultancy group enabled to do BOS exercises

autonomously.

Operational StrategyIndustrial footprint re-design

CLIENT SITUATION & APPROACHOur client is a global leader in chemicals treatments, services and equipment supporting a diverse range of customers in various sectors. They needed to improve its Cash Conversion Cycle as a means to improve working capital efficiency. We focused on the simplification and integration of the end to end Order-to-Cash process. Our solution was highly interactive and engaging, and in tandem with the client we:

• Mapped E2E processes and identified improvement potential

• Assessed process efficiency and maturity including “first time pass” considering customer service metrics

• Estimated the loss reduction potential and business benefits• Recommended priorities for improvement and development

of a progression road map.

RESULTS: • Adoption of a “first time right” process and culture leading to

9% points gain customer service within 6 months.• Improved workflow efficiency due to 20% less re-work• Working capital reduction of 11%.

World Class Supply ChainWorking capital optimization

CLIENT SITUATION & APPROACHOur client is a leading provider of speciality chemicals and ser-vices to the food, healthcare, industrial and energy sectors. The business had grown rapidly as a result of acquisitions and was already quite advanced with functional initiatives to reduce cost. The targeted next step in maturing Supply Chain practices was to seek for a holistic optimisation of the inbound materials supply taking into account the total cost of ownership, We supported this process by:

• Development of a customized and holistic Total Cost of Ownership (TCO) approach across the value chain

• Identification of main loss/benefit areas from a TCO perspective and set up of targeted projects to address those

• Inclusion of both suppliers and internal functions throughout the process and building their capability for improvement.

RESULTS:• € 7M Loss elimination delivered through 19 focused projects• Development and implementation of TCO loss eradication

methodology.

World Class Supply Chain ManagementValue chain improvement

CLIENT SITUATION & APPROACHOur client is a leading provider of Epoxy resins. After subsequent acquisitions the company experienced vastly different organisa-tional structures and practices specifically in the Maintenance organisation. The decision was taken to use one of the biggest sites as a pilot to develop a Blueprint for roll-out into the group. We supported in:

• Re-design of complete Maintenance organisation• Development of detailed implementation & qualification

plan for organisational development• Coaching people into their the new roles & constant learning

review to adapt initial concepts based on real experience.

RESULTS:• Re-designed and implemented Maintenance organisation• Increased contractor safety performance & professionalism

in contractor management• Blueprint organisation developed for further roll-out into the

group.

Organisational EffectivenessOrganisational design

CLIENT SITUATION & APPROACHOur client is a major European chemical company. The organiza-tion had undergone a global Manufacturing Excellence program but was concerned with the capture and sharing of knowledge around problem solving. We introduced Solvace, a collaborative problem solving platform that learns from each problem and con-nects the dots within the organization through machine learning. We used the following approach:

• Demonstrate Solvace value at the largest plant within a focused team (ca.10 maintenance & production engineers / technicians), digitizing problem solving process

• Roll-out Solvace in an organic way across the organization, using online training and coaching by change agents.

RESULTS:• More problems solved (access to the right experts, deeper

analysis, more rigorous action plan follow-up). • Less bureaucracy (paperless, centralized monitoring and

reporting)• Knowledge capitalization (captures 100% of each problem

solving initiative from start to finish).

World Class Operations ManagementDigital knowledge management & problem solving

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EFESO Consulting brings more than 35 years’ experience and thought leadership, supporting many of the leading global brands in both mature and emerging markets.

EFESO Consulting is a group of over 400 experienced consultants representing 45 nationalities. It operates from 26 offices around the world with a strong presence in Europe, USA, South America, Middle East, Africa and Asia.

An international scope and local delivery capability ensures that clients have access to the specialist skills they require whether at national, regional or global levels.