Deliver complex programmes within time and cost
Companies in the Defence and Aerospace sectors usually have detailed processes and high programme management expertise.
Nevertheless, the Bundeswehr’s complex procurement projects are delayed by 41 months on average (*) in combination with huge cost increases and performance limitations.
Customers usually react angrily to this, resulting in a growing escalation that is not constructive for either the customer or the manufacturer.
We can help identify and implement the right targeted performance measures for your company so you can achieve sustainable operational improvements.
(*)KPMG analysis of defence projects 2014
- Increase in efficiency of the project delivery process, manufacturing structure and manufacturing organisation
- Adaptation of supply chain strategy (supplier management/audits, logistics; warehouse)
- Creation of integrated project planning across the entire value chain
- Management of the customer interfaces
- Support in difficult project phases (projects in “need”, negotiations or “claims” with customers/suppliers, “project handover/completion” or revision of time and cost plans)
Improving programme control
An international technology corporation keeps exceeding time and cost targets in programme delivery. Project margins deteriorate during execution by an average of 4% compared with the initial bid margin.
- Revision of the programme review process including a higher level of detail for weaknesses
- Establishment of recurring communication between programmes and management
- Adjustment of monthly progress monitoring and margin development
- Establishment of new project roles and training for these (PMO, planners, claim managers)
- Adjustment of variable compensation/target agreements
Increased transparency of project complexity and risks. Early countermeasures are expected to lead to a significant reduction in margin erosion.
Your Contact Person
Dr. Mike Körner