In order to become more agile and able to meet the competition from emerging markets, FLSmidth needed to reinvent itself with a radical review of their project deliveries. Valcon helped the company to undertake concrete initiatives to become more cost-efficient and customer-focussed. Order processing was offshored to the company’s Indian branch, cutting costs by 50%, while improving quality and achieving greater flexibility. Better IT tools helped improve process integration, decision-making and efficiency. Procurement in lower-cost countries reduced equipment costs by up to 70%. The company also started to focus on understanding value from a customers’ perspective, whether it was helping improve their sustainability profile or reducing project lead times.
All the hard work and focus on how best to run projects means that now FLSmidth supplies its solutions cheaper, faster and better than before. And there is clear customer focus throughout the organisation, with all employees knowing exactly how their contribution creates value for their customers. Today, FLSmidth can proudly stand at the forefront when global players fight for new orders.
Valcon developed our ability to deliver projects quicker, better and at lower cost.Bo Steffensen Chief Lean Officer, FLSmidth
Increased group EBITfrom 2-3% to 8-10%
Reduction in order processing cost by50%
Reduction in equipment costs by70%
Reduction in lead times for delivery of a cement plantfrom 30 to 20 months