Pagamon managed the PMO of a global cost reduction program for a car manufacturer

Project outline

  • The Client has launched an ambitious program of cost reduction. The goal is to generate 2 Bn€ of free cash-flow over 3 years and increase its operating margin. Any compromise on quality is not acceptable
  • To achieve its goals in cost reduction, the Client sets up a cost office responsible for steering the program dynamics on its entire industrial scope

 

Project approach

  • Development of methodological tool, provision of expertise and animation of multidisciplinary working groups to accelerate implementation through short decision loops and problems escalation to the next level for arbitration
  • Definition, management and improvement of a specific tool that consolidates all improvement actions on total delivered cost

 

Results

  • A dedicated tool :
    – Managing all industrial functions action plans
    – Consolidating forecast and actual detailed savings at plant / region level, allowing a multi-scale performance steering
    – Consistent with controlling framework and shared by all Client’s global manufacturing sites
  • Speed-up of decision making and implementation processes through training of the key stakeholders and close follow-up of action plans
  • A cost reduction annual target achieved
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