
Following its acquisition by a private equity fund, the client has been implementing a comprehensive Value-Up program to enhance enterprise value. After completing the initial phase (Wave 1) focused on strengthening procurement cost competitiveness, inventory management, and lead time improvements, the client embarked on the second phase. Wave 2 centered on establishing a company-wide quality management system spanning materials procurement, production, installation, and after-sales service (AS), as well as building and formalizing operational strategies for the new B2C business segment.
Addressing Elevated Market Demands
The client operates in the mid- to large-scale construction market, where quality standards are becoming increasingly stringent. Beyond aesthetics, heightened functional requirements now demand strengthened quality controls to minimize defects and ensure the swift, precise resolution of post-occupancy issues.
This necessitates the implementation of robust quality verification processes covering the entire value chain, from materials to installation, along with preemptive quality checks and an issue follow-up system to address defects and prevent recurrence.
Additionally, with the expected peak in new apartment construction in 2018, the remodeling and B2C markets for aging housing units are poised for continued growth. Unlike traditional markets, the B2C segment requires shorter lead times, diverse size specifications, and rapid response capabilities. Success in this space demands leveraging existing expertise in quality and technology to build efficient and scalable operational systems.
Wave 2 Goals and Key Initiatives
Wave 2 of the project focused on two primary objectives: "Establishing Quality Competitiveness Systems" and "Ensuring Successful B2C Business Operations." Key initiatives included:
1. Establishing a Comprehensive Quality Competitiveness Framework
- Quality Verification Processes: Defined quality validation protocols and compatibility standards for new product development and material changes.
- Integrated Quality Gates: Set up quality gates within extrusion, assembly, and installation processes, along with updated inspection standards.
- Defect Response System: Built a robust after-sales service (AS) and defect management system for swift issue resolution.
- Q-Cost Management: Identified and structured quality cost (Q-cost) elements and their corresponding management framework.
2. Developing a B2C Operation Framework and Strategy
- Product Portfolio and Process Design: Established the product portfolio, operational processes, and assembly designs required for B2C operations.
- Lead Time Optimization: Designed and executed inventory and production strategies to meet required lead times.
- Scaling for Growth: Developed operational plans to accommodate increased volumes, including investment planning.
Results and Future Steps
The Value-Up initiatives in Wave 2 are expected to reduce key quality issues by over 50%. Additionally, the newly established B2C operational framework has already enabled the successful handling of initial order volumes, setting the stage for sustained competitive advantage in the market.
Looking ahead, Looxent will continue supporting the client with Wave 3 activities, aimed at further optimizing operations to accommodate anticipated revenue growth. The next phase will focus on Plant Capacity Optimization (PCO) and Strategic Outsourcing (SO) initiatives to enhance capacity alignment across material procurement, factories, and partner suppliers. These efforts are slated for completion by March 2017.
Looxent’s collaboration has enabled the client to establish a solid foundation for both quality excellence and operational readiness, empowering them to excel in both traditional and emerging markets.
Following its acquisition by a private equity fund, the client has been implementing a comprehensive Value-Up program to enhance enterprise value. After completing the initial phase (Wave 1) focused on strengthening procurement cost competitiveness, inventory management, and lead time improvements, the client embarked on the second phase. Wave 2 centered on establishing a company-wide quality management system spanning materials procurement, production, installation, and after-sales service (AS), as well as building and formalizing operational strategies for the new B2C business segment.
Addressing Elevated Market Demands
The client operates in the mid- to large-scale construction market, where quality standards are becoming increasingly stringent. Beyond aesthetics, heightened functional requirements now demand strengthened quality controls to minimize defects and ensure the swift, precise resolution of post-occupancy issues.
This necessitates the implementation of robust quality verification processes covering the entire value chain, from materials to installation, along with preemptive quality checks and an issue follow-up system to address defects and prevent recurrence.
Additionally, with the expected peak in new apartment construction in 2018, the remodeling and B2C markets for aging housing units are poised for continued growth. Unlike traditional markets, the B2C segment requires shorter lead times, diverse size specifications, and rapid response capabilities. Success in this space demands leveraging existing expertise in quality and technology to build efficient and scalable operational systems.
Wave 2 Goals and Key Initiatives
Wave 2 of the project focused on two primary objectives: "Establishing Quality Competitiveness Systems" and "Ensuring Successful B2C Business Operations." Key initiatives included:
1. Establishing a Comprehensive Quality Competitiveness Framework
2. Developing a B2C Operation Framework and Strategy
Results and Future Steps
The Value-Up initiatives in Wave 2 are expected to reduce key quality issues by over 50%. Additionally, the newly established B2C operational framework has already enabled the successful handling of initial order volumes, setting the stage for sustained competitive advantage in the market.
Looking ahead, Looxent will continue supporting the client with Wave 3 activities, aimed at further optimizing operations to accommodate anticipated revenue growth. The next phase will focus on Plant Capacity Optimization (PCO) and Strategic Outsourcing (SO) initiatives to enhance capacity alignment across material procurement, factories, and partner suppliers. These efforts are slated for completion by March 2017.
Looxent’s collaboration has enabled the client to establish a solid foundation for both quality excellence and operational readiness, empowering them to excel in both traditional and emerging markets.