---
title: Reengineered Manufacturing Processes Further reduced by 46%
description: The resultant simplified end-to-end processes reduced the planned implementation costs by 18% (fewer processes and process steps to be implemented)
image: https://blog.totallyoptimizedprojects.com/hs-fs/file-2321425321-jpg/Logos/Olex_logo.jpg
---
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# Reengineered Manufacturing Processes Further reduced by 46%
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Last updated: June 14, 2020
The resultant simplified end-to-end processes reduced the planned implementation costs by 18% (fewer processes and process steps to be implemented)
---
> 
## The Client's Challenge
The client had just completed a nine-months exercise with PWC to rationalize and improve its processes prior to installing selected software. However, we demonstrated that we could further simplify the (improved) processes when we took a 21-step ‘improved’ process and reduced it down to 5 steps.
We were asked to help the team quickly simplify all of the processes before systems design and implementation planning commenced.
### Scope
The areas that Olex Cables simplified included:
- Enquiries/quotes/tenders
- Sales order processing
- Production planning
- Manufacturing control
- Inventory management
- Cash collection
- Order dispatch/Distribution
- Complaints management
- Expenses/payments.
This represented nine concurrent process streams
### Approach
Due to time constraints, the process was run intensively over six weeks across all of the processes with a full-time team of 16 Olex staff
All Olex sites in Australia and New Zealand were covered
We assigned 2 consultants to lead the assignment
The team that had completed the nine-months re-engineering study was successfully convinced to now do it again, faster and to question their previous results.
### The Results
- The identification of a common “Vision” for the project highlighted previously unknown misunderstandings as to the business goals to be achieved and the meaning of ‘success’
- The number of processes were reduced by 46% and the number of process steps overall was reduced by 38% (from the already ‘improved’ processes)
- The principles underlying the manufacturing planning process were revised to make them customer-driven
- Manufacturing/purchasing flexibility was increased through common process design
- Issues with the already purchased solution software were identified (well before implementation) allowing work-arounds to be designed and optimized as part of the project
- Sixteen Olex staff were educated, coached and trained in Business Simplification techniques.
### The Payoff
Concepts such as cross-docking, account management and proactive credit management were introduced and adopted
The resultant process and information flows were used to evaluate, at a detail level, the software products already purchased and highlighted gaps and deficiencies for remedial action
Problems previously unresolved (sometimes never even raised) were identified, addressed and resolved.
## Explore Business Simplification Further
Read "TOP Thinking" blog posts on Business Simplification by **[clicking here](https://blog.totallyoptimizedprojects.com/top-thinking/topic/business-simplification).**
And read "TOP Thought Leaders" by **[clicking here](https://blog.totallyoptimizedprojects.com/thought-leaders/topic/business-simplification)**.
## Download & Share
[Download now
**"UNDERSTANDING PROCESSES"**
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Topics: [Project Success](https://blog.totallyoptimizedprojects.com/top-case-studies/tag/project-success), [Business Simplification](https://blog.totallyoptimizedprojects.com/top-case-studies/tag/business-simplification), [Manufacturing](https://blog.totallyoptimizedprojects.com/top-case-studies/tag/manufacturing), [Olex Cables](https://blog.totallyoptimizedprojects.com/top-case-studies/tag/olex-cables)
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