Step Change Multi-disciplinary Task-Force Projects
Case Example: Lean Process Re-engineering of Soft FM
Background to the Supplier Relationship Intervention
The client was being subjected to contractaul penalties of £0.9m per annum because customer perception of premises cleanliness had consistently failed to meet the standards set by the industry regulator. In contrast, if the client could achieve the regulator's objectives they could achieve bonuses of up to the same value; a potential £ 1.8m benefit.
The client's incumbent supplier had been replaced earlier that year because a new supplier had proposed a solution involving the introduction of a specialist data collection and management system which would collect the results of facilities inspections from PDAs, to identify patterns of failure. Furthermore the supplier proposed to add substantially more people. This they claimed would deliver the desired result.
After several months it was clear that this wasn't happening, and there was a substantial disconnect between the management style of the client and supplier.
An intensive diagnostic of the level of waste in the existing Soft FM processes confirmed that meeting the minimum standards was possible and that leaner processes would enable the reduction of costs by up to 30% (a further £ 3m benefit) at the same time. This justified the selection of the following supplier relationship management (SRM) intervention approach.
Supplier Relationship Management (SRM) Intervention Approach
- Multi-disciplinary Step Change Task Force Project
Objectives of the Multi-disciplinary Step Change Task Force Project
- Improve quality to achieve the regulator's objective
- Reduce costs by 20-30%
Internal Customer
- Premises Facilities Leader
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