Westinghouse Transformation

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    10-Dec-2014

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With an extremely complex supply chain that handles over 50% of the nuclear reactors around the globe, and a revenue plan growing from $3 - $30 billion, Westinghouse Electric Company had to be extremely focused in their transformation efforts not to deter customer service or quality performance while driving out over $1 billion in costs... For the rest of the story, click here.

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  • 1. 6%0% 1% 8% Transformation Benefits Delivery Plan ... $1.1 billion Supply chain transformation is becoming a critical 40% 44% element for driving business results. New Supplier Sourcing Transportation Sourcing Inventory Ops Effcy Req to Check COLLABORATIVE TEAM WITH A COMMON MISSION Juan Molina, Jack Lanzoni and Jim Dixon, each Vice Presidents of their own BU supply chains sponsored the transformation initiative for the Westinghouse organization. A core team THE GREEN MOVEMENT HISTORY was later formed to include approximately 8 members in total. Nine teams were formed to In the years since Three Mile Island, not a single nuclear Nearly 50 percent of the nuclear power plants in operation develop a high level plan consisting of key initiatives and a business case. The teams were plant has been ordered and built in the United States. worldwide, and nearly 60 percent in the United States, are based Inventory & Warehouse, Transportation, Brokerage, Packaging and Customs, Demand Nuclear power used to be the environmentalist's ultimate on Westinghouse technology. Worldwide, the nearly 8,500 Planning, Project Management, Operations and Performance Management, Requisition to pariah, but now the green movement has a new pariah - employees of Westinghouse Electric Company continue to Check and Supplier Development and Localization. Benefits were calculated based on a 2007 fossil fuels and their carbon dioxide emissions. As a pioneer value-added engineering and services creating success baseline spend and the $30 billion revenue, ten year, growth model. result, some of the world's most ardent Greens have come for customers in their increasingly demanding markets. The around to embracing nuclear power. In the last two years, three core businesses of Westinghouse Nuclear Fuel, Nuclear Our vision at Westinghouse was to create a world class SCM organization that would focus on the US Nuclear Regulatory Commission has received 17 Services and Nuclear Power Plants support this mission. exceptional value creation for the entire company and for individual business units. The new applications for 26 nuclear reactors. Proposals for six design would equip the organization with value creating, leading edge practices and additional reactors are pending. CALL TO ACTION technologies to enable the supply chain to outperform the competition by significantly reducing Westinghouses supply chain transformation story is about our total cost of goods while servicing our customers in the most efficient and effective manner. continuous innovation and growth. The drivers for change at Westinghouse included the global growth in demand for nuclear energy, the development of emerging markets, the diverse Supply Chain Transformation: Focus on Implementation & Initiatives Organization Design customer segments the company serves, and investor TRANSFORMATION PROCESS IMPLEMENTATION AND RESULTS People Competency Development expectations for improving margins. The Westinghouse Once we gained agreement with the senior executive team By deploying a Core Team and a set of 9 Extended Teams Change Management executive team challenged us to lower supply chain cost while as to the goals, objectives and targets we agreed upon a (representing the main SCM processes) across the implementing the new capabilities needed to support the longer Supply Chain re-design process to develop the business units, we built a business case and strategic plan Supply Chain Strategy & Configuration term nuclear renaissance. The global growth projections for infrastructure capable of delivering 10x growth. John geared to generate value, while improving our Governance Westinghouse looked like a minimum 3x growth rate with an Kotter was hired to lead Westinghouse through the change competitive position in the market place. This value upside of 10x. This is a glide path greater than Starbucks coffee SCOR Model Process Design process. We began our journey by having each of the core would come through increased leverage, synergies, shops. To prepare for this growth, a major initiative was launched to retool the company for growth and value creation team members interview key thought leaders in the reduction of duplication, closing existing gaps, and System Integration organization. From voice of the customer interviews we improvements of existing processes. O...