Case: Henkel

Henkel

Henkel is a German multinational chemical and consumer goods company headquartered in Düsseldorf, Germany. Founded in 1876, the DAX company is organized into two globally operating business units (Consumer Brands, Adhesive Technologies) and is known for brands such as Loctite, Persil, Fa, Pritt, Dial and Purex. In the fiscal year 2023, Henkel reported sales of around 21.5 billion euros and an operating profit of 2.011 billion euros. Henkel holds 47,750 employees with 83% working outside of Germany.

"We were able to reduce overall production costs by 18%, reduce waste by 24%, and reduce the scrap rate by 11%." Chief Production Officer
Max Gelfenstein.

THE CHALLENGE:

The challenge we faced in production was identifying and addressing production losses. The goal was not only to minimize these losses but also to optimize our production processes for increased productivity and cost-effectiveness. Through rigorous assessment and implementation of strategic improvements, we strive to achieve higher operational efficiency and maintain the highest standards of quality in the output.

THE SOLUTION:

The application of the Methodology for calculating criteria for functional efficiency and cost of processes to optimize the operations of industrial organizations to optimize the operations of organizations allowed us to analyze and accurately understand which processes generate losses. As a result, we identified non-optimally organized processes in production that led to the formation of a bottleneck, changed the sequence of processes and thereby eliminated losses in production areas, and also identified and eliminated losses that arose due to the lack of incoming control of materials and raw materials. This allowed us to reduce costs without additional investments, only by changing the way we perform operations and not miss order deadlines.

RESULTS:

Results of work: we were able to reduce overall production costs by 18%, reduce waste by 24%, and reduce the defect rate by 11%. The lead time for orders has decreased from 14 days to 9 days.

In addition, an audit and assessment of the quality of the management system and the activities of senior managers was carried out from the point of view of assessing the optimal organization of processes, personnel management from the point of view of employee efficiency, assessment and forecast of the likelihood of bankruptcy. As a result, we have significantly improved the effectiveness of the company's management system.

Case: Henkel

Henkel

THE CHALLENGE:

THE SOLUTION:

RESULTS:

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