Selected Examples of Our Work
 

STRATEGIC REVIEW AND ORGANISATIONAL TRANSFORMATION

A major organisational transformation at an Australian Building Society. This work started with a comprehensive review of the organisation’s historical performance, competitive positioning and capabilities. The review covered all aspects of the Society’s market offer, from customer and product profitabilities, down to the account level, through to brand values and customer perceptions. An over-arching strategic position was developed in a joint Board-Senior Management workshop. We then worked with the senior management team to develop detailed strategies and implementation plans. The transformation included seeding of new talent at mid and senior levels of the organisation, substantial transformation of the nature and footprint of the branch network, development of new products and a reinvigoration of the brand.

Our team worked very closely with both the Board and the CEO during this engagement, attending Board meetings and utilising some of the very specific knowledge and capabilities of Directors in the process. We helped our client recruit a program manager to run the implementation, and assisted in briefing specialist external providers of market research and communications services. While the overall benefits will more than double return on equity, implementation has been planned to deliver cash positive benefits within the first six months.

 
PRODUCTION PLANNING AND MANAGEMENT

For a regional airline, we conducted a comprehensive review of Heavy Maintenance, spanning Forward Planning through to Production Management and Post Check Reviews. Major recommendations covered substantial changes to check configurations, formalisation and clarification of responsibilities across the board, changes to roster structures, and implementation of performance measurement systems. The first major check conducted post-review resulted in a 30% reduction in downtime duration and 20% reduction in man hours. Critical to the success of this pilot was critical path planning, and shift by shift progress reporting against plan.

 
ORGANISATION DESIGN FOR NEW PRODUCTS

A large, private company had built a dominant East Coast position in one specific segment of the building products industry. They had recently experimented with a new product that could potentially deliver a new growth platform, but the results to date had been unsatisfactory and there was disagreement at Board level on the next steps. We examined the opportunities in the market, identified strengths and weaknesses in the distribution network as well as in production and in organisation design. Working closely with both senior management and the board, we developed a marketing plan and organisation specification that would substantially strengthen the firm’s efforts in this sector. Subsequently, a manager was hired to oversee the entry into the new product and market segment, and we helped that manager integrate into the new role.  In the year following presentation of the Plan the firm achieved 25% growth in new product sales and are now working towards doubling sales within three years.

 
DEVELOPMENT OF ENGINEERING PRODUCTION AND MAINTENANCE PLANNING TOOLS

The engineering and maintenance department of a rail and freight operator was experiencing difficulty in coordinating locomotive and wagon maintenance activities, with multiple maintenance sites, multiple locomotive and wagon configurations and maintenance schedules, a significant backlog of work and inefficient reporting systems impeding effective planning and scheduling. Additionally, maintenance scheduling systems were neither up-to-date nor maintained consistently. The backlog, the inaccurate planning system plus a forecast upturn in demand meant that demand for maintenance services was set to overwhelm the company’s in-house capacity and have an adverse effect on the company’s ability to operate revenue-generating freight services.

ARPOS was asked to develop a maintenance model that would assist in identifying a solution, permit the company to identify critical work and develop maintenance scenarios.  The overall aim of this system was to provide revised work schedules, to increase fleet availability and understand the operating and budget impacts of changing maintenance schedules. Ultimately, the model provided this operator with the capacity to update its maintenance planning on a monthly basis, quickly construct reliable maintenance scenarios and understand the cost and operational aspects of each plan, vastly improving the department’s credibility within the company. The tool also assisted in the efficient and optimal deployment of resources leading to cost savings and greater asset availability.

 
CUSTOMER SEGMENT PERFORMANCE ANALYSIS

Detailed profitability analysis and market segmentation. We helped this health insurer develop its first detailed view of customer and product profitability, on both a marginal and fully allocated basis. In the course of the work, we identified high and low performing customer segments, which were then related to existing market research to enable development of improved offers. Additionally, substantial improvement opportunities were identified and then realised in claims management, branch operations and other areas of the company.

 
CHANNEL STRUCTURE REDESIGN AND ON TIME PERFORMANCE

A chemicals company was experiencing a major decline in profitability, with ongoing loss of customers, and in turn, sales. The company sold in excess of 13,000 SKUs and in excess of 3,000 customers, via a complex matrix of product and sales groupings. ARPOS was engaged to assess profitability of product groups. This project required full allocation of costs across product groups and provided visibility to profitability at the product group level for the first time. Unprofitable groupings were eliminated where turnaround options were not viable, while increased support was provided to profitable products and product groups.

For the same company, ARPOS was charged with improving the on time performance of delivery of product to customers. Our Team led the upstream work focused on improving on time delivery from suppliers. Working daily with internal teams and focusing on the root cause of each delivery “failure”, Procurement IFOT failures were reduced by over 50%, and in turn, customer IFOT performance improved from ~85% to 98%. Importantly, this performance was sustained in the 12 months following the completion of project activity.