about this project

We were asked to look at the Purchase-To-Pay (P2P) (end-to-end) process of a large Energy client, in 2018. Everybody across the process and from around the world were brought together to take part in a 2-day VSM on the P2P process. Locations ranged from Budapest to Bangalore and had employees from the offshore site, buyers and warehousing to ensure coverage from across the process

There were numerous improvement activities across the Purchase to Pay (P2P) process. These were independent projects and at times, were in conflict with other parts of the process. Processes were not being followed by supply chain and Operations, each one blaming the other for current performance

There were more than 50 vendor managed warehouses, storing materials, that had not moved in several years, while stock levels were increasing

Project Scope

“In service of operations we will have”

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• The correct material
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• At the correct time
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• In the correct place
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• In the correct packaging
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• In the correct quantities
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Improvement Strategy

Deployed Methods:

• Agreed Lean Deployment program

• Workplace organisation using 5S

• Kaizen Events for rapid change

• Training of staff for sustainability

• Performance Management

• Operations and Procurement dual

• Sponsorship of all Improvement Projects

Benefits Delivered

• £5.4M cost OPEX reduction

• 2000 hrs. removed from planning activities

• Reduction of £20M in materials stored

• Reduced warehouse storage by 40%

• Creation of the ability to replan work if not started, removing need for child work orders

• All work order materials supplied as a single package, no split materials sent to site

• All work order materials packaged to suit end user rather than warehouse

• Aligned buying department with end user. Materials now ordered with lead time + 6 week planning time frame. Compared to 300 days before use