Fleet Support Limited - Rapid Cost Reduction

Problem
New company formed from public sector organisations.
Excessive overheads needed rapid reduction to make company viable.
Company needed to improve service levels at the same time as reducing their costs to the achieve the contracted terms and conditions.
Needed a15% cost reduction in 6 months.

Our Approach
KPMG (UK) appointed (employed by them at the time) and I was the project manager.
Worked with management team to agree approach, workstream leaders and timeline.
Used highly structured approach to identify key customer requirements and eliminate non value-add processes.
Strong governance and senior management commitment to timeline.
Coaching of local leaders to implement their restructuring plans.
Strong project management focus to ensure delivery.

Environment
Public sector / private sector dockyard.

Results
£3 million GBP saving on a £17 million GBP cost base.
Six Sigma approach to process improvement established.
Client delighted with results.
FSL eventually became BAE Surface Ships Support Limited.

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Significant results can be achieved in short timescales with senior management commitment and a structured approach.