Steelmaker Identifies $5.8M in Direct Savings through Process Improvement Initiatives

A Canadian industry-leading structural steel contractor serving large, complex, and sophisticated projects over 4,000-tons

$5.8M

direct savings identified

95%

of pain points addressed

Challenge

Due to excess competition in the >4,000-ton steel project market, this client faced margin pressures on all their projects. Excess costs within inventory management and handoffs added to these financial pressures resulting in a mid-market strategy initiative to grow and sustain profitability in all markets served.

Discovery

TPG worked closely with the client to implement internal process improvement initiatives and to lay the foundation for continuous improvement. Through this initial engagement, 4 projects were prioritized to initiate momentum:

Tool Inventory and Lifecycle System: Implementation of tool management and inventory software for 4 plants to gain control and ensure sustainability of the efficiencies gained
Improving Departmental ‘Handoffs’: Optimization of ‘handoffs’ between departments through automation of inputs and outputs leading to expedited project workflows
Contract Change Management: Implementation of optimized future state processes to improve communication, visibility, and governance through best practices
Roles & Responsibilities (R-Matrix) and Departmental Charting: Development of a new organization-wide chart and key responsibilities for each of the roles. Gained alignment for all departmental accountabilities, feeding into performance metrics and management

Value Created

As a result of this initiative, this client enjoyed both immediate and long-term financial and strategic benefits:

$5.8M in direct savings through procurement cost reduction and development of balanced scorecard
based on reduction of unnecessary work and increased capacity for FTEs
95% of 425 pain points were resolved through implementation of the projects listed above