Aquafeed Producer Regains Control of Their Operations through PMO Enhancements

The client’s senior corporate leadership team had a clear vision of how they want to involve and empower employees, the kind of local leadership, producing the highest quality product and to be a customer centric organization with customer satisfaction as the core value. They soon realized the enormity of the challenges they face and that they do not have the internal capacity to implement their vision for the organization.  Upon this realization they decided to partner with USC Consulting Group.

Like with every USC engagement, it was a collaborative partnership with the client to get the local personnel on board through a team-effort approach.

Project Baseline and Critical Path. For the PMO effort to be successful, the team needed to identify “one version of the truth” and that was the Project Baseline and Critical Path for each individual project as well as the overall success of the program. The USC team worked closely with the client to create detailed and accurate Project Plans. The Project Baselines preserved the integrity of projects while we applied our Precedence Network Methodology to ensure compliance to the project schedule.

Scalability. Future scalability was a key requirement in the design of the PMO. This included the following:

• Standardize Project Management Practices
• Ensure Strategic Alignment to the Organization’s goals
• Foster Collaboration
• Regain Governance & Control
• Drive Continuous Improvement
• Support Workstream Project Managers
• Measure Performance
• Support future Strategic Initiatives
• Build an experienced internal capability

Warehouse Management. Together with the client we successfully implemented a fundamental transformation in warehouse management – transitioning from a subcontracted model to in-house management.

This strategic shift addressed critical challenges, optimized the client’s operations, and generated significant positive results. The following outlines the transition strategy, the quantifiable results, and the risks.

Transition Strategy

We implemented a phased transition strategy toward in-house management, based on four fundamental pillars:

• Process and Control Development: Identifying and implementing new processes and controls for more efficient raw materials and finished goods management.
• Talent Internalization: Hiring, educating and training in-house personnel, including warehouse managers, operators, and logistics staff.
• Infrastructure Changes: Leasing and adapting warehouses.
• Warehouse Consolidation: Centralizing operations to reduce costs.

A key to change management is involving people. It helps them understand the need for change and foster’s buy-in early in the change process.

The USC team engaged with the client’s employees at their workstations from day one. USC believes that if we are not able to change people and their behaviors, nothing changes. We used our methodologies and tools to involve everyone during the analysis and solution design phases. We achieved this in the following ways:

• Created detailed Process and System Maps to understand the operation and identify gaps and opportunities during facilitated System Review Sessions.
• Implemented our Employee Involvement Prototype (EIP) process boards across all warehouses with the participation of the managers, supervisors, and operators on a daily basis. Together we focused on their operational goals, safety needs, and continuous improvement.
• Coached the supervisors on best practices to manage their operation utilizing Leader Standard Work (LSW), created and validated by their managers.
• Managed the flow of materials in and out of the warehouses by implementing a Process Monitor, ensuring operators weigh all incoming and outgoing products.
• Defined a Tier Structure Meeting to ensure a feedback loop. Structuring how information is shared and escalated from the operation to management and back.

In-House Management

The transition to in-house management has yielded tangible results and a positive impact on profitability for the company. The deliverables included:

• Reduction of Inventory Variances: New processes and controls, including weight controls at the pallet-level (not the truckload), have drastically reduced inventory discrepancies.
• Reduction in Operating Costs: Warehouse operating costs were successfully reduced.
• Increased Operational Control: The client now has complete control over operations, enabling process optimization, cost reduction, and improved overall efficiency.
• Warehouse Consolidation: Centralization has decreased fixed costs and optimized inventory management.

“One aspect that I truly appreciate about the work team I am a part of is their strong focus on interpersonal relationships. It is not solely about analyzing data, but also about connecting with individuals. The synergy between these two elements has consistently yielded exceptional outcomes.”
– Logistics Supervisor