The DTI and the UK automotive industry created the Industry Forum
in the 1990s to address major concerns about the competitiveness of
the automobile sector, in terms of both productivity and quality.
After more than five years and some 500 MasterClasses, the DTI undertook
the evaluation of their investment in the venture and commissioned
a two-year study to measure the Financial Benefits of Process Improvement
Activities.
During the DTI study it became apparent that companies who
benefited most from the improvement activity had set financial targets
at the outset and quantified benefits at its conclusion in order to measure the return on investment.
The Results
The benefits are summarised below. The averages are generated from
a fifteen day improvement programme. The improvements, recorded in
the seven Quality, Cost and Delivery measures, were translated into
bottom line impact figures. The financial benefits include both achieved
cost savings and the marginal contribution from additional sales.
The average return on investment is achieved in just over a month
| |
Average Realised Benefit |
Average Potential Benefit |
| All Activities |
£150,747 |
£366,872 |
| All Automotive Activities |
£147,592 |
£466,459 |
| All Non-automotive activities |
£154,762 |
£240,127 |
SMMT INDUSTRY FORUM : PRODUCING
REAL BOTTOM LINE BENEFITS
|
