"CYLAD analyses showed a completely different way to look at the topic."

CTO of a leading Metal parts Supplier

Typical questions we face:How can I optimize my working capital requirement (WCR) without jeopardizing sustainability of delivery (due to inventory reduction) and suppliers (due to payment terms)?

Typical questions we face:How can I optimize my industrial setup to minimize work in progress and fixed costs?

Typical questions we face:Which services are mandatory and which should be reduced?

Typical questions we face:Are the support functions of my plant still adapted to my business?

Typical questions we face:How do I optimize my product by using design-to-value (design-to-cost/design-for-manufacturability)?

Typical questions we face:How can I put in place an efficient monitoring system to ensure implemented initiatives impact the P&L?

Perspective on impact at stake

Solid operational excellence addresses three financial dimensions: working capital, fixed-, and variable costs. While working capital optimization pulls levers such as lead time reduction, inventory reduction, financing and debt management, fixed-cost reduction looks at people (mainly white collar), assets and surfaces. Variable cost reduction considers product costs and product related people costs (typically blue collar) as main contributors of cost of goods sold (COGS).

Distinctive CYLAD assets
  • Ability to make the link between finance concepts such as CAPEX, OPEX, EBIT, NPV and technical context on the shop floor
  • Proven approach for operational levers on WCR reduction (stock and lead time reduction, production flow optimization)
  • Ability to address WCR reduction through financial levers (debt management with suppliers, buyers and a financial partner)
  • Practice-proven approach for fixed costs reduction: people/assets/surfaces
  • Robust design-to-value and product cost reduction approach (e.g. functional analysis)

References

Working capital reduction

~15% WCR reduction on two major aerospace programs by improving assembly lead time and rationalizing inventory

Lead time increasement

~30% increase of the average lead time to pay supplier receivables of an automotive equipment manufacturer

Fixed cost reduction

Fixed costs structuring and reduction (~20% in two years) for a major aircraft program

Cost reduction procurement

~30% cost reduction on procured parts for a major aerospace program