Full steam ahead into the future
An energy technology manufacturer launches an Operational Excellence program and takes three turbine plants to a new level of performance
A leading, listed energy technology manufacturer is realigning one of its operational business segments: the steam turbine unit is intended to set a company-wide benchmark for performance and future readiness. EFESO supports the manufacturer with a structured OPEX assessment across three plants. As part of the project, the company optimizes the individual sites and integrates them into an active production network, significantly improving the performance of the business unit.
Challenge
To support further growth, an energy technology manufacturer strengthens its operations. Three steam turbine plants set the direction for an OPEX program.
MoreEFESO approach
Together with the management, EFESO conducts an OPEX assessment. Process flow analyses based on shop floor data provide clear and actionable insights.
MoreLessons learned
A balance between trust-based collaboration and critical distance contributes to sustainable project success.
MoreEFESO success model
For each site, the project team developed specific improvement measures and defined strategic action areas for the program.
MoreGrowth requires a strong operational foundation
Faced with increasing competitive pressure, a globally leading energy technology manufacturer needed to secure its market position and capitalize on new market opportunities. A key step was the realignment of its operational units. By launching a Manufacturing Excellence program, management initiated a company-wide effort focused on Operational Excellence and future growth. The objective was to place production on a future-ready foundation.
With a broad product-portfolio and decades of experience in plant engineering, the company is one of the world’s leading manufacturers of steam turbines. Three German plants form the core of its European manufacturing network. One plant builds large-scale new systems, another manufactures smaller turbines with its own mechanical manufacturing capabilities, while the third specializes in system maintenance and spare parts. Each site has its own strengths and historically evolved processes. Before the project, collaboration between the plants was largely reactive rather than systematic. Lead times varied, coordination between engineering, procurement, and production was not always seamless, and there was no overarching view of performance.
The objective was to reduce lead times, unlock efficiency potential, and establish the individual plants as a high-performing network. As a strategically important business area, the steam turbine unit was not only to be strengthened over the long term, but also to serve as a company-wide role model for the program.
A focus on Operational Excellence becomes the key to sustainable growth.
Three plants, one targeted methodology
To implement the initiative, the executives responsible for Operations, Controlling, and Finance engaged a multidisciplinary EFESO consulting team to provide both structural and subject-matter support throughout the project. Together with management, the core team conducted an on-site audit at each of the three plants and held discussions with the local stakeholders. It also carried out a detailed analysis of processes within the plants and across the sites. Three methodological elements proved particularly critical to the project’s success:
Tandem principle
The collaboration was based on the tandem principle: each cross-functional topic - from Operational Excellence and network planning to execution readiness - was jointly owned by one representative from the client organization and one EFESO team member. This ensured that the project did not produce theoretical or abstract results. Instead, the outcomes were developed directly and jointly with the management, embedding them within the organization from the very beginning.
Structured OPEX assessment
EFESO’s structured OPEX assessment provided the foundation for the analysis. Its framework enables a systematic review of plants across the entire value chain, from order processing and planning through production and maintenance. At the same time, the team examined processes in key production areas such as assembly, shaft machining, and casing manufacturing on the shop floor. The primary focus was on assessing the productivity of employees and machines and identifying how processes could be redesigned to shorten and minimize critical paths within projects.
Process flow analyses
Process flow analyses based on actual orders proved to be a particularly important tool. For each site, the team selected specific completed orders and worked with local experts to analyze processing times, coordination loops, late changes, and the interfaces between engineering, procurement, and production.
The results provided a complete and transparent picture of the current state of operations processes across all three plants. This created the foundation for developing an integrated action plan with coordinated measures and subsequent follow-up projects.
The tandem principle embeds results within the organization from the very beginning.
Excellent results are built on communication, transparency, and trust
In this project, the following aspects proved to be drivers of success:
Use communication as the foundation for project success!
The objectives for developing future-ready operations across all plants were communicated clearly from the very start of the program in order to establish a shared understanding and strong commitment. The communication did not focus solely on managers, but included everyone who would contribute to the success of the OPEX program. This enabled all project participants to work toward a common goal from the outset.
Rely on transparent solution paths rather than theoretical concepts!
Instead of using theoretical models and generic benchmarks, the team drew on insights from day-to-day orders, documents, and process steps on the shop floor. This significantly accelerated the transition from diagnosis to tailored measures. All results were developed collaboratively and made transparent and visible to everyone involved. This direct involvement created a strong sense of ownership and generated significant momentum for the implementation phase.
Do not shy away from asking challenging questions!
The EFESO team deliberately challenged existing solutions, processes, and assumptions. However, turning challenging questions into concrete solutions requires a solid basis for collaboration: one that is built on trust while remaining sufficiently independent to address uncomfortable truths openly. This balance generated valuable results throughout the project. The carefully coordinated composition of the project team and the clear allocation of roles proved to be key success factors.
From three sites to an active production network
The program did not end with a final report. Instead, it resulted in a company-wide action plan. The concluding project meeting brought all three plants together and translated the individual site analyses into a shared program. This step was critical to ensuring seamless implementation and, ultimately, the success of the project.
For each site, the team presented concrete optimization measures that were firmly embedded within the organization. In addition, several strategic action areas were defined and subsequently pursued by the company as independent projects:
- Execution Readiness: This action area ensures that orders enter production fully prepared and, ideally, without requiring further involvement from engineering or planning.
- Planning Excellence / Network Planning: The target state is to continuously monitor capacities across all sites, optimize plant utilization, and strategically advance the development of the production network.
- Sales & Operations Planning: As part of planning excellence, the focus is on further developing tactical and strategic planning. Going forward, sales, other relevant stakeholders, and key information are to be integrated into the planning and production process in a value-adding manner.
For each of these action areas, a representative from the company assumed responsibility, supported once again by an EFESO team member. This continued the proven tandem model in the follow-up projects, based on trust, constructive collaboration, and communication on equal terms. As a result, the energy technology manufacturer successfully completed this strategically important project. The performance potential of the steam turbine unit was identified and systematically realized, while the three previously isolated plants were transformed into an active production network. The business unit now has a solid operational foundation for further growth.