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Operations Experience
Booz Allen's experts in operations draw from years of experience working with hundreds of clients. Some examples:
- Operations strategy for the extended enterprise: For a leading global aircraft manufacturer, we helped the client to diagnose and develop a model of its entire supply operations that included a make/buy selection process, and to validate options analytically. The concept extended through the firm's first- and second-tier supply base. The client achieved significant improvements in product cost, quality, and cycle time.
- Supply chain management: We were engaged by a telecommunication equipment supplier to extract substantial value and cash from a new and improved supply chain network. The network capabilities included a multifunctional, multicompany approach to demand-and-supply planning, including an explicit trade-off between investment in capacity versus inventory. Key concepts included late-stage customization in company-owned integration centers and modular subassemblies suitable for contract manufacturing. The client achieved US$4 billion reduction in working capital, while high levels of service were maintained.
- Sourcing: We were engaged by a home improvement retailer to substantially reduce cost of goods sold by applying sourcing techniques across both branded and unbranded ranges. Key concepts were developing and rolling out a tool kit that provided insights into supplier cost and competitive positioning, and designing a structured process for managing suppliers to deliver ongoing value. The client achieved US$150 million annual savings within 18 months.
- Innovation: We were engaged by a "Big 3" vehicle manufacturer to improve new product development effectiveness, and to ramp up the number of development programs with existing resources. We used our best-practice transfer methodologies and combined them with product development cycle time reduction capabilities developed in the defense electronics environment. As a result, the client's product development throughput increased by 30 percent.
- Operations strategy in service industries: For a leading insurance company, we are working to develop a product framework that helps specify a new, efficient business model from asset pools to customer propositions. The business model is being tailored to meet the needs of a multibrand business, with minimum complexity and maximum shared services. The client's operating costs are being reduced by 25 to 30 percent, and development spending by 50 percent.
We helped a leading bank move its risk practice from a reactive "follow the regulator" approach, to a proactive one aimed at building operational integrity. The concept goal was to embed quality control into the base process, with a thin layer of quality assurance, to ensure the control ethic would continually be reinforced. In practice this means moving from an "end of line" inspection approach to "online" monitoring. Engineering quality into the process as opposed to controlling for quality helps reduce work and the need for physical control layers. As a result, the client has achieved lower operational and process cost with a reduction in capital charges.
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