Case Study

One Operations Community: strong performance on every playground

A chemical company launches a joint performance improvement initiative with EFESO across twelve plants on four continents. Significant improvements in cost drivers and margins are achieved within a short period.

Winning teams often share two key characteristics: selecting the right talent and the ability to align that talent toward goals – whether in a sprint or a marathon. But how can this be achieved when the “playing field” spans multiple continents?

Challenge

A chemical corporation aligned the diverse organizational cultures of a subsidiary after a joint venture onto a common course. The objective was not only to professionalize work processes in production and maintenance globally, but also to empower employees across these and other areas to drive continuous improvement.

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EFESO approach

EFESO provided the strategic framework using a proprietary methodology proven in similar projects. Through careful preparation and guidance, the project team enabled a successful transformation into a “One Operations Community” across four phases.

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Lessons learned

Proactive action is key to success. Professional communication, internal change management capabilities, and the consistent, ambitious implementation of improvement measures are especially critical.

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EFESO success model

The collection and cross-site sharing of best practice examples proved to be a central knowledge source and a key process driver. For effective knowledge transfer, an in-house academy with specially trained Process Kaizen Engineers (PKE) played a pivotal role.

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This was the challenge faced by a chemical company that needed to redesign the global organizational structure of a subsidiary following a joint venture. Together with EFESO, the company developed and implemented a “One Operations Community” across twelve plants worldwide – all within four years. The proof of success? During this period alone, approx. 230 completed improvement projects delivered benefits around EUR 120 million in total.

 

Realignment of the global production footprint

With the development, production, and distribution of a synthetic raw material, the company is an essential part of a larger chemical and energy industry group. As a subsidiary, it primarily supplies highly specialized chemical products to customers in the automotive and tire industries, the construction sector, and the oil and gas industry.

Following a joint venture, the corporate leadership decided to unlock efficiency potential across the company’s twelve production sites and further enhance the performance levels that have already been accomplished. Achieving this can be a challenging task even within a single country, due to company-specific cultures and working methods that have evolved over many years. In this case, however, the objective was to align sites in nine countries – with a total of around 6,000 employees and highly diverse structures, mindsets, and technological systems – on a shared transformation path. The management defined several milestones for this transformation, with three key priorities taking precedence:

  • Processes: Harmonization and professionalization of workflows in production and maintenance.
  • Performance improvement: Establishment of a sustainable infrastructure—both technological and procedural—to drive continuous improvement.
  • Collaboration: Ensuring step-by-step performance enhancement as a unified workforce across all sites (“One Operations Community”).

Wiith KPI targets such as a high double-digit million amount as the annual EBITDA* goal, the group concretized its objectives. EFESO quickly came into play as a project partner, as comparable projects in the chemical industry and with strong international orientation served as convincing references. Companies using EFESO’s OPEX approach typically achieve cost savings in the range of 5:1 to 10:1 compared to project costs—and systematically advance the maturity level of their entire organization toward excellence.

*Earnings Before Interest, Tax, Depreciation, Amortization

Target: an annual EBITDA improvement in the high double-digit million range.

Communication and best practices as initial success drivers

In this case, three EFESO experts in international transformation processes, together with four project leads from the client side, formed the central transformation management team for the project—supported by local resources at the plant sites. The transformation unfolded in several successive phases: "Potential Analysis," "Program Design," and finally "Boost, Build & Continuous Improvement."

Particular attention had to be paid to preparing for the launch of such a transformation program. Since this initial “momentum” significantly influences the overall course of the project, a false start must be avoided through careful preparation. Especially critical was clear communication about the “why, what, and how” of the program. Accordingly, the EFESO team first worked closely with the chemical company’s leadership on how to position the program internally and how it would contribute to achieving overarching goals. Hopes and concerns were also discussed to proactively address these with employees and explain, for example, how this program differs from previous initiatives.

Since employees in transformation processes primarily look to colleagues one or two levels above them, EFESO developed a cascade-based communication strategy tailored specifically to the project. Additional communication elements were integrated to accompany the entire project and visualize objectives and results. Alongside standard elements like a project logo and intranet communications, this also included quarterly videos in which sites presented and shared their project highlights globally.

It was also essential to ensure that the communication approach resonated with the workforce. To this end, the EFESO team provided customized training and coaching to equip the project leads and internal stakeholders to deliver the program’s core messages effectively. Together with other preparatory measures, this created the necessary foundation for a successful start into the analysis phase—and set guiding principles for global program communication and coordination across all subsequent phases.

Analysis phase: KPIs, potentials, and best practices

In this phase, the project team developed a detailed picture of the current state at each plant. Key focus areas included:

  • Preliminary data collection and analysis per site: Gathering essential information on organizational structures, e.g., the ratio of direct to indirect roles, and benchmark comparisons of key operational metrics in production and maintenance.
  • Development of initial hypotheses per site: Based on the preliminary analysis, hypotheses were formulated and then systematically validated during two-week scans at each site.
  • Execution of potential scans per site: Internal teams were prepared to accompany the standardized potential assessments. Targeted analyses were then conducted to validate the hypotheses, and a project portfolio was derived, including the expected performance impact.
  • Collection of best practices: As part of the on-site assessments, best practices ("export hits") were documented in one-pagers and shared with other sites across the network. These typically involved straightforward improvements with immediate impact on the shop floor.

Design phase: Creating a customized production system

Based on the analysis, the project team developed a customized production system, particularly with:

  • … an established standard toolkit that enabled the structured implementation of improvement projects. This included a methodological approach, training materials and tools in six languages, as well as application examples tailored to the chemical industry.
  • … the development of a blueprint for the production and maintenance organization, ensuring comparable roles at each site.
  • … the creation of target specifications for critical core processes, particularly in maintenance.
  • … the design of a governance structure for the program. This included the development of a standardized implementation approach for each site with mandatory and optional elements, the definition of a wave-based implementation sequence (including the nomination of the first three lighthouse sites), and the assignment of roles and responsibilities for the program.

In just two weeks, clear objectives are set for each work.

BOOST phase: Performance and future readiness

In this next phase, the project team returned to the sites to build targeted OPEX know-how and directly drive performance improvements on the ground. Key priorities included:

  • Implementation of harmonized, selected core processes, such as asset criticality assessment and derived maintenance strategies, work order management processes, etc.
  • Execution of initial process improvements and efficiency gains: Launch of the first improvement projects with EFESO in a three-month rhythm to establish a short-cycle "drumbeat" within the organization.
  • Realization of quick wins from the best practices list, enabling employees to achieve tangible results quickly—further accelerating program acceptance.
  • Deployment of the organizational blueprint, which included consolidations to bring sites up to benchmark level. Special attention was paid to strengthening critical roles to ensure long-term organizational sustainability—for example, through the creation and staffing of Reliability Engineer roles to safeguard asset availability.

BUILD / continuous improvement phase

At this stage, the project team empowered employees in specialized areas to independently and continuously drive improvements in their respective fields. This was organized around three competence centers:

  • Autonomous Management (AM)
    The focus here was on engaging production employees so they could develop a stronger understanding of and sense of ownership for their equipment. This was achieved through several measures, such as involving them in the development of inspection and cleaning standards, jointly designing intuitive and safe workstations, and establishing an effective process for capturing and implementing simple improvements.
  • Focused Improvement (FI)
    The project team targeted specific losses, such as reducing changeover times, cutting down energy or additive consumption, and improving product quality and process stability. This area also included the use of advanced analytics—for example, to extend product shelf life by optimizing process parameters.
  • Planned Maintenance (PM)
    The emphasis here was on advancing best-in-class maintenance processes. In addition to the aforementioned maintenance and reliability methods, this included selecting and implementing digital maintenance tools for task allocation, resource planning, work approvals, mobile communication, etc.

To establish these three competence centers (so-called “pillars”) at the sites, the project team appointed dedicated pillar leaders who, by virtue of their roles, were already responsible for driving improvements in those areas (e.g., the technical manager for the PM pillar). This helped prevent the creation of a parallel organization. Additionally, Process Kaizen Engineers (PKEs) were trained for each pillar. These experts received specialized training—including EFESO certification—and became key drivers of improvement within their respective domains.

A three-month cycle provides the “drumbeat” for identifying and implementing improvements.

Proactively paving new paths

During the implementation of the project, the following insights proved to be particularly critical to its success:

Be disciplined AND adaptive!

Closely follow results & drive imple-mentation, reflect on priorities along the way & adapt path if needed.

Follow “bamboo approach”!

Protect the core of your production system, but flex to ensure local adoption and ownership.

Create internal CI infrastructure!

Establish internal roles and expertise to drive continuous improvement and best practice exchange.

Proactively drive change management!

Invest in professional communication and internal change management skills.

Keep raising the bar!

Keep focus on your “north star” and push through difficult times – you will be surprised by what is possible.

230 improvement projects were successfully completed in four years.

No limits for new goals

In just four years, the project team not only laid the foundation for a global “One Operations Community,” but also demonstrated the vast potential that a well-coordinated, cross-border collaboration among site teams can unlock. While the original savings target by improvements was set at €40 million at the start of the project, the team identified nearly €90 million in potential during its progression—ultimately, the company realized over €120 million in benefits. The following elements of EFESO’s approach were particularly instrumental in achieving this success:

  • The implementation of a proven, ready-to-deploy production system tailored to the company’s specific needs.
  • A reliable on-site presence and support from the consulting team, which was thoroughly familiar with the respective local cultures and languages—significantly increasing internal acceptance of the project.
  • A collaborative and trust-based consulting approach. Even during challenging project phases, the consulting and internal teams consistently found joint solutions.
  • The establishment of an internal PKE (Process Kaizen Engineer) Academy for the three competence centers / pillars. Initiated by EFESO, these pillars are now fully led and managed globally by the internal pillar leaders.
  • Cross-site sharing and application of operational best practices. This enabled quick wins and accelerated the transformation of all twelve sites—supported by proven processes and organizational models.