SIO is a rapid, multi-step approach that optimizes the interfaces between different areas of your business. Each project is customized to meet a strategic outcome and unlocks the door to significant new opportunities to improve your financial performance. (click here for more info on SIO)
Energy Interface Optimization (EIO)EIO is a subset of SIO that focuses on optimizing the interface between energy and process systems at a manufacturing location. EIO combines our experienced people with your team to create better energy and process projects that have a higher rate of return than your existing list of solutions to optimize your plant. And we do it quickly. (click here for more info on EIO)
Special ProjectsSince we have a proven capability to help our clients make better, more profitable decisions, they end up asking us to work on a variety of special projects. If we can jointly define your desired outcome and we are confident we can achieve it then we will respond with a customized proposal that meets your needs. (click here for more info on Special Projects)
Strategic Interface Optimization (SIO)
If your company is like most, you divide work by specializing into divisions, departments and process areas. Specialization provides many benefits, but it also has a side effect – the creation of "silos". Silos aren't bad, but when the spaces between the silos – we call them interfaces – are not optimized, inefficiencies can happen.
We work with your team to identify and assess the strategic interfaces in your business. Then we help you synchronize these interfaces with respect to strategy, business and market needs, resources and time to maximize results.
- Provides a bridge to link strategy and operations and creates a feedback loop from the shop floor to the corner office
- Creates a framework to cultivate synergies between business and technical components
- Can lead to global optimization across multiple sites and business units
- Empowers your people with a new way of thinking that will continuously generate new ideas and creates a beneficial cultural shift in your organization
- Solutions are typically worth millions of dollars and many do not require any capital to implement
- Management commitment to focus on strategic interfaces and willingness to support the changes identified by their team
- Use a rigorous non-biased, data driven approach in combination with team experience (client and 5DN) to develop new strategies and solutions
- Use the concept of synchronization as a primary tool to optimize interface points
- Desire to create results quickly and support the discipline to compress schedules to achieve the SIO outcome
- Very aggressive goals for cost savings, throughput improvement and/or growth
- Considering acquiring or just acquired a new plant or an entire business from another firm
- Plant processes are highly complex and very resource intensive
- Considering or just entered into a strategic alliance or joint venture with another firm
- Want to streamline portfolio and optimize the net revenue of divestitures
- Need to bring new products to market faster
- New management team in place at your company and/or plant
- Want to leverage R&D pipeline and develop new markets for products
- Planning to or have implemented a re-organization
- Developing/implementing a major new business strategy
Energy Interface Optimization (EIO)
We know that you've already spent time coming up with ideas to save energy and make process improvements. After all, that's one of your responsibilities – continuous improvement. But we've found that there are several challenges that keep every plant from creating the best, most profitable solutions that optimize energy and process systems. EIO is a proven way to overcome these challenges.
- Minimum of 10% energy savings with less than a 2 year payback
- Equivalent dollar amount of savings in process areas (increased throughput, yields, quality, procurement savings) and usually much more $$
- 1/10th of the total savings will be non-capital and make 5DN EIO project self-funding
- All solutions documented, qualified and quantified with economics and risk
Let's assume a plant uses $10 million/year in energy and the total value of product produced is $150 million/year. An EIO project will for this plant will conservatively generate
- $1 million/year in energy savings will less than 2 year payback
- $1 million/year in process savings (increased throughput, yields, etc) with less than 2 year payback
- $2 million/year total savings
- 10% of the total or $200,000 in non-capital improvements that can be implemented immediately
- Easily integrates with existing corporate improvement programs (6 sigma, Lean, etc)
- No cost & low cost solutions can be implemented immediately
- New projects will be identified faster & implemented more effectively than before
- Existing project ideas will be improved – sometimes increasing IRR by over 200%
- EIO Process will "breed" new thinking among staff to create better solutions even after 5DN EIO session
- Your team will have a sense of ownership for these solutions – not just a list of consultant ideas
- Work done in "bursts" produces results in minimum time and reduces resource requirement of your people
- You will have a road map that facilitates a realistic implementation plan
- Results provide platform to support your strategic goals
- EIO improves your competitive position
Special Projects
- Portfolio expansion/contraction activities
- Mergers and acquisitions/due diligence
- Environmental issue and opportunities
- Supplier contract negotiations
- Build or buy scenario analysis
- Infrastructure reliability and availability scenarios
- Cogeneration system analysis
- Technology optimization initiatives
- Feedstock procurement requirements
5 Degrees North has successfully helped companies (small and large) reshape their future and reset their business goals using its proven bi-directional (shop floor to corner office and back to shop floor) approach.