Industry, export and defence programs

A delay analysis of two naval corvettes (C1)

The building of the corvettes was delayed. An analysis clarified the main reasons and identified action plans for providing the much-needed stimulus.

A trading company investing abroad (C2)

A Scandinavian trading company felt it was strategically necessary to become a part-owner of a production facility in Eastern Europe. Needless to say, co-operation between the various owners and at management level was not easy, due to very different traditions and business attitudes. Furthermore, a profound technological and organisational overhauling was necessary in order to obtain the requisite degree of robustness and profitability. An analysis indicated the expected long-range profitability as well as a “top-ten list” of critical areas of concern.

A Scandinavian building contractor going abroad (C3)

A contractor planned to expand by penetrating new markets abroad. Having already had bad experiences, he chose a new strategy of being more “local” within the foreign markets. The profitability and, notably, the critical areas were pinpointed by an analysis group which included local professionals.

A new technology project in mining (C4)

The “open mining technique” is much less expensive than tunnel mining. The only tunnel mining company in the world in its field nevertheless decided to stay in the market, competing successfully with competitors by offering advanced techniques and a high-quality product. The vehicle identified for reaching this goal was an integrated hi-tech programme stretching over ten years. A thoroughly independent midway audit was called for. The project was on track, but several “thinking points” were identified.

Scandinavian industry fights for increased international competitiveness (C5)

An internationally acknowledged turnkey business has used the Successive Principle to strengthen its position in complex international negotiations. To make a profit without committing oneself to unacceptable and dangerous threats is a difficult balancing act these days. It requires a realistic and comprehensive evaluation of the uncertainties involved.

The future commercial potential of an international company (C6)

A widespread international industrial concern was suffering from previous bad management, and from associated reduced financial strength and competitiveness. The internal potential net value of relevant parts of the company was analysed as part of an ongoing restructuring process, whose aim was to restore the competitiveness of the company. As a by-product of the analyses, a list of suggested changes and other ideas from internal and external key persons was produced and ranked. The analysis produced a surprising result which nevertheless subsequently proved to be absolutely accurate.

Verification of the tender price of an energy export turnkey project (C7)

Turnkey projects hold additional threats compared with more conventional deliveries of equipment. These threats, as well as the potential gain, were revealed through risk analysis of the project budget. In addition to the expected total costs involved, the company was provided with an overview of the contractual threats and potentials to be considered during negotiations with the client and with the sub-contractors.

Profitability of a fish farm in Greenland (C8)

The natural conditions for a particular fish production facility were exceptionally good at a certain location in Greenland. The logistics and other factors were, however, less favourable. The analysis estimated the profitability, the investment demand and the uncertainty involved.

Accelerating the start of implementation of a mega project (C9)

A large defence programme needed to accelerate its start-up. As the companies and key persons involved came from many cultures, there was a need among the project team for improved mutual understanding and better consensus about the tight master schedule. These objectives were achieved during group analysis seminars, applying the Successive Principle to the schedule. The actual performance strongly confirmed the forecast results.

A German pharmaceutical company: priorities of its development projects (C10)

The development capacity of the company was overloaded. In order to restructure the portfolio of master development projects, an analysis was carried out among a group of about 40 researchers and managers. The analysis identified the expected overload as well as the potentials of new alternative plans or strategies.

Identifying the few most profitable ideas among all the R&D projects of a car manufacturing company (C11)

Over a period of three years, a car manufacturing company found that by using the Successive Principle it could dramatically improve its vital early profitability forecast, allowing a more profitable early strategic decision-making process.

A high tech “mega” systems contract (C12)

A very complex “mega” contract was opened to international competition. A Scandinavian company participated while it was building up an international joint venture. The company used the Successive Principle over the three-year tendering period to gain an overview of the threats and possibilities. The company finally won the contract and later achieved a satisfactory profit in accordance with the original analysis.

Expediting a large ship conversion project to meet difficult deadlines (C13)

A passenger ship was to be enlarged and upgraded into a de luxe cruise liner. It was a Scandinavian partnership, but disagreements between the two senior managers on some details delayed the actual start. However, passengers had already booked tickets. The analysis principle was used to identify ways of expediting the conversion phase. This allowed a “fast forward” plan to be launched. Tight follow-up was maintained and the cruise liner began operations on time.

Steen Lichtenberg

Dr. Steen Lichtenberg

1930 - 2019 †
Industry, export and defence programs
13 cases such as: a contractor going abroad, a project in mining, a delay analysis of naval corvettes, and identifying the most profitable R&D ideas.