MOBILITY: Sustainable Cost Reduction

INDUSTRY: Automotive


“We needed to establish a scalable business operating system, while reducing cost.”


Strategy Deployment

Hoshin Kanri established

3.5M €

savings potential identified


cost saving ideas developed

The Big Idea

Sustainable operational performance improvement, to grow above market average while delivering higher EBITA: A global leader in mobility solutions had already improved EBITDA through various measures. However, the company was not able to accomplish the shareholder objectives of higher than market EBITDA performance. The newly appointed COO reverted to 2 proven frameworks and methods to establish sustained performance improvement: Strategy Deployment (Hoshin Kanri) and Sustainable Cost Reduction (SCORE).

The Blueprint and Roadmap

The Strategy deployment process (Hoshin Kanri) was established in Operations, to guide the required transformation. Subsequently the Sustainable Cost Reduction (SCORE) method was applied to a selected product portfolio to identify, evaluate and implement higher cost savings.

The Impact

  • The Strategy deployment (Hoshin Kanri) process was embedded as standard framework to connect corporate strategy, operations strategy and the annual budget/target setting process. -> Coherent execution of the strategy with balanced resource allocation.
  • A 2-day SCORE workshop was conducted, where a cross-functional team developed 95 ideas developed, of which 20 ideas were evaluated in detail and prioritized for implementation. -> 3.5m€ savings potential identified, with owners for implementation assigned.
  • A structured follow-up cadence was established to push from idea to impact. -> Secured delivery of operational cost savings.

The Advantage

  • We are seen as ‘cost reduction gurus’
  • Our SCORE method is proven and has delivered results for many customers
  • We work ‘hands-on’ with clients
  • We enable clients to structure their follow-up for success
Download as PDF 
Posted in