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5February2001ColoursLeanDiagnosticMetsecPurlinsThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinseyCompany.ThismaterialwasusedbyMcKinseyCompanyduringanoralpresentation;itisnotacompleterecordofthediscussion.
1Purlinsmarket%marketshare,£MetsecWardsStructuralSectionsAyrshireAlbionOthersAveragepricepertonneMetsecvaluepropositioncustomerserviceflexibilitydesigntechnicalsupportpre-specifiedbymanystructuralengineers Source:MetsecSales
2 * Basedon2xhalfyearresults ** Basedonhalfyearresult Source:MetsecaccountsMetsecbusinessunitsPurlinsHEPCRFMetstrutMetframeWindowsSupportsystemsProfilemanipulationEnergytubesSales*£000actualOperatingmargin**%actual9.3-5.912.0-1.04.170.75-3.612.18.8TonnesPIAplustarget2003
3ThebusinessneedShareholders
expectationsBusinessneedCustomerneedsRaiseproductivityby?20%ReduceworkingcapitalReducevariabilityofmanufacturingleadtimesDeveloplong-termcapabilitiesGrowthebusinessIncreaseROSfrom8.8%to?15%by2003Returnon£3MinvestmentfornewfactoryDemonstrateimprovementcapabilityLeadtimesconsistently2weeksOTIF98%Customercomplaints1.2% Source:Team
4ThecontextHowdowemakethemostofthenewfactory?
5AgendaCurrentstateFuturestateBusinessbenefitsImplementation
6WeeklydemandTonnes*WeeksDemandOutput2000 * exludesSFSandMetframe,accessoriesincludedas+5%byweightSource:Sales~capacity
7Typicaldailydeliveries*TonnesMonday * WeeklyaveragefromJanuary2001Source:MetsecshippingandtransportdataTuesdayWednesdayThursdayFridayAverage=107Monday’sdeliveriescanbedoubletheaveragefortherestoftheweek
8ServiceLevel%OTIF2000AprMayJunJulAugSepOctNovDecSource:Metsecreports4ordersbalancedperdayAverageTarget8898
9CustomercomplaintsManufact-uringLoadingDrawing
officeLogist
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