General introduction brochure Philips Industry Consulting

1. Where consulting
gets hands-on
Philips Industry Consulting

2. 2 Philips Industry Consulting

3. Philips Industry Consulting is passionate about helping its clients, inside and
outside Philips, to improve their business.
Our team of experienced professionals believes that innovation and
operations management are the key drivers for lasting business success.
Together with our partner, Conclusion Consulting Industry, we have offices
in Eindhoven, Utrecht, the Netherlands and Espoo in Finland.
We believe in offering you tailored solutions based on proven solutions and
practical approaches.
Please allow us to introduce our service offerings in the following pages
and if you have any question or you are interested to know more, do not
hesitate to contact me.
Yours sincerely,
Ruud J.G. van Vessem
VP Philips Applied Technologies
Where consulting gets hands-on 3

4. How can we help you?
If you’re building a bridge, you call on a civil engineer,
not a physicist who knows the theory but not the
practice. Shouldn’t it be the same in business? If you want
something fixed, you call a practical specialist who delivers
tangible results fast.
When you call us, that’s what you’ll get: practical solutions in
innovation and operations management. All our people are
experienced professionals who’ve spent years working in industry,
tackling the kinds of challenges you face every day. They know
the theory. But their approach is strictly hands-on, so you see the
improvements you want, quickly.
Because they have seen and solved a huge range of real-world
problems, our specialists get to the heart of your issue rapidly. They
bring a toolbox of proven techniques and solutions. And they’ll
propose a solution that fits your specific situation.
Above all, they’ll roll up their sleeves and work with you to develop
and implement the solution, so you accelerate rapidly to impressive
results. Our customers have achieved business breakthroughs such
as 35% faster development at 30% lower cost, or 300% production
ramp up in just 6 months. Let us help you as well, wherever you need
solutions from initial idea to mature production.
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5. Where consulting gets hands-on 5

6. Our focus areas
Accelerate your innovation to profit
You want your innovation to deliver better business results?
Experience shows there are two vital ingredients in accelerating
innovation to profit: making smarter choices and optimizing
development productivity.
Through smarter choices you can move from individual ideas to
producing a continuous stream of innovations. And you can reduce
costs and time-to-market by developing product / system architectures
that you can re-use to address a range of market segments. Moreover,
our practical specialists can work with you to guarantee robustness by
stress-testing your innovations in various competitive scenarios.
Equally important, our people will help you rapidly achieve the second
vital ingredient: improved development productivity – applying lean
approaches, maximizing the value of open innovation partnerships and
ensuring your innovations are customer-driven.
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7. Accelerate into smooth-running production Accelerate your operations to excellence
Ready for industrialization? In starting a new business or introducing Improving operations is your priority? You want to see yields,
a new product line, the challenges are similar and complex. Our throughput, quality and reliability go up? Costs come down?
practical experience helps you avoid the pitfalls and ramp up quickly to
profitable volume production. Our hands-on problem-solvers will often join your teams on the
ground where implementation happens. So you’ll rapidly see results.
We’ll get to work with you where it matters. That could be right
at the start, developing an industrial strategy ready for tactical and For instance, your supply chain achieves better delivery performance
operational implementation. at lower costs. Or it is fundamentally re-shaped and optimized to
support rapid growth in your company.
Of course, practicality is integrated in every step. For example,
we’ll help you focus on design for manufacturing: not only in Your entire operations become lean, with waste and inefficiency cut
industrialization, but earlier in innovation too.You’ll be sure of a out at every step.You can do more with less. Or your quality and
feasible design that can be manufactured in line with your business reliability increase sustainably, because you’ve eradicated the cause of
goals. problems at their root.
We can help you progress rapidly through ‘make or buy’ decisions, The result may even be a complete overhaul to support increased
process flow design, building a supply chain, and sourcing the skills and capacity, new technologies or as part of a global move. Working with
resources you need.You’ll obtain the results you want on cost, quality you, our people will help you make the right choices in complex
and logistics, with a supply chain that supports your strategic direction. issues of strategy, insourcing/outsourcing and finance. So you’ll achieve
operational excellence that favorably impacts your bottom line.
Where consulting gets hands-on 7

8. Delivering results
Improved development productivity Cost-effective industrialization
Challenge Challenge
• Enable a European furniture manufacturer to reduce • Support a specialist in healthcare devices in the cost-
time to market by applying lean principles in product effective industrialization of a new devices platform
development
Where we helped
Where we helped • Creation of a multi-parameter cost system (Activity
• Value stream mapping; introduction of lean and Based Costing) for the product
creation of “kaizen” teams • “Make or buy” decisions
• Re-structuring of the product development process • Selection of approved suppliers
• Creation of a new, predictable “assembly instruction
process” that reduces overall project throughput Result
• Pre-pilot production established: 50% cost reduction,
Result key suppliers identified
• Shorter design cycles saving up to 15 man-weeks per
product, reducing supplier quotations by 50%, and
halving planned testing facilities
Smarter choices Rapid ramp up
Challenge Challenge
• Help a lighting manufacturer adapt its technology • Enable a major player in industrial electronics products
development and operations to seize opportunities in to achieve a rapid ramp up in production and improve
the rapidly growing LED market shop floor activities at the same time
Where we helped Where we helped
• Development of new product building blocks and • Assessment of development and manufacturing
technologies organization
• Creation of medium and long term roadmaps and • Recommendations for improvements and
R&D programs implementation plan
• Updates in technology development, supply chain, • Enhancing relationship with key customer
purchasing and organization
Result
Result • 300% production ramp up in just 6 months, with
• “Box of bricks” architecture enabling 35% faster improved logistics performance
development and 30% lower costs
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9. Lean supply chain for greater flexibility & lower costs
Challenge
• Help a major international manufacturer to define and
implement a comprehensive outsourcing strategy with a
selected partner, based on agreed way of working
Where we helped
• Identification of value-add per activity
• Assessment of labor suppliers, and trade-offs between
component and activity outsourcing
• Development of seamless, integrated way of working
• Cultural change and transformation from purchasing to
supply management
Result
• 10% cost reduction and higher customer satisfaction
Optimization from sales to order fulfillment Lean transforms factory performance
Challenge Challenge
• Improve end-to-end sales to order fulfillment performance • Improve the operational excellence of a major
for a global home electronics manufacturer, including manufacturing site
setting up a completely new supply chain
Where we helped
Where we helped • Introduced lean practices in close cooperation with
• Improved forecasting accuracy from 25% to 49% in management and shop floor
3 months • Intensive training for management to be self-sufficient
• Reduction of inventory by 75% in 4 months in lean
• Creation and testing of ERP and warehouse management • Establishment of “kaizen” teams on shop floor
systems • Entire new factory hall built based on lean principles
• Design of new ways of working; hiring and training new
staff Result
• Gains of 20-30% in production efficiency, 40% in stock
Result reduction, and 35% in factory throughput
• A new, efficient supply chain, with high performance Sales
& Operations
Where consulting gets hands-on 9

10. 10 Philips Industry Consulting

11. Solutions for your business
Many of the companies that call on us are based around physical
products, in development, production or both. But we also work
with customers in the service sectors, such as energy provision and
healthcare. Whatever the sector, they trust our professionals and the
know-how they bring from having worked in similar businesses or
similar situations.
Our people speak your language. They understand your pain and the
need for solutions that fit your unique opportunities and constraints.
Equally, they always consider the bigger picture.
What’s more, besides their individual expertise, they can call on 850
specialist colleagues in technology development, product development
and manufacturing. So they’ll bring leading-edge know-how, insights and
experience to the table. And while you’ll get a solution to your specific
problem, it will come with insights into the benefits for your business as
a whole.
So let’s get practical. If you want workable solutions that deliver
measurable results and you want them implemented quickly, call us –
Philips Industry Consulting, the hands-on problem solvers.
Where consulting gets hands-on 11

12. Philips Industry Consulting is part of Philips Applied Technologies
Contact us at the following addresses:
Philips Industry Consulting, Eindhoven Office, The Netherlands
Phone : +31 40 27 40827
Fax : +31 40 27 42828
e-mail : industry.consulting@philips.com
Philips Industry Consulting, InnoHub Espoo, Finland
Phone: +31 62293 8550
e-mail: innohub.espoo@philips.com
Conclusion Consulting Industry (CCI), Utrecht, The Netherlands
Phone : +31 30 21 93800
E-mail : info@conclusion.nl
www.conclusion.nl/cci
Find out more at:
www.apptech.philips.com/industryconsulting
©2010 Koninklijke Philips Electronics N.V.
All rights reserved.
Document order number: APT595-10-0012
In line with Philips’ commitment to sustainability, this brochure
has been printed on environmentally friendly paper.