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Case Study "Chromatech"

Chromatech is a $3.5 billion manufacturer of gas meters with three divisions. It has grown through acquisitions, resulting in over 1600 IT systems and numerous process variants. Issues with safety, compliance, and the administration's ability to handle a doubling of residential meter sales have arisen. The CEO wants to continue revenue and profitability growth while improving corporate social responsibility. Setting up a BPM discipline could help address these issues by standardizing processes, reducing costs, improving oversight and prioritization, and ensuring customer requirements are met as they change.

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hassan
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42 views

Case Study "Chromatech"

Chromatech is a $3.5 billion manufacturer of gas meters with three divisions. It has grown through acquisitions, resulting in over 1600 IT systems and numerous process variants. Issues with safety, compliance, and the administration's ability to handle a doubling of residential meter sales have arisen. The CEO wants to continue revenue and profitability growth while improving corporate social responsibility. Setting up a BPM discipline could help address these issues by standardizing processes, reducing costs, improving oversight and prioritization, and ensuring customer requirements are met as they change.

Uploaded by

hassan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Study “Chromatech”

Company background “Chromatech” – 1/2


 Manufacturer of gas meters, revenue of $3.5B
 Three divisions: industry gas meters, commercial gas meters, residential gas meters
 Industry gas meters are engineered to order, commercial gas meters are standard but manufactured
to order, residential gas meters are standard products manufactured in series.
 Residential gas meters are sold based on a low price, the others are expensive and have to be of an
outstanding quality and combined with excellent service.
 All divisions have already conducted process improvement initiatives, using various methods and
tools and different external consultancies. There exists plenty of process documentation in the
company in many different digital formats (PPT, Visio, etc.) and also in paper form.
 Since the company grew through acquisitions there are numerous process variants in place
supported by over 1600 IT systems. The maintenance cost is tremendous.
 Lately there have been issues regarding safety and compliance.
 A new contract has been made with a home builder. The sale of residential gas meters is expected to
double over the next four years. The production capacity looks fine but it is unclear if the
administration can handle the targeted sales volume.

2
Company background “Chromatech” – 2/2
• The company has sales and service subsidiaries in 65 countries. The COO noticed that all those
subsidiaries work differently with very different performance and cost levels.
• The head of the division for residential gas meters looks for quick cost reductions to stay competitive
and not risking to loose the contract with the new home builder.
• The management team feels that it has become a challenge to really oversee the organization and to
set the right operational priorities or to focus improvement initiatives.
• Customers in the industry and residential gas meters sectors change permanently their requirements
regarding service and maintenance as well as product features.
• The CEO feels that the industry gas meters they offer are “very mature” and provide almost outdated
technology and service solutions. This could be a problem for future growth.
• The CFO believes a shared services organizations could help saving cost but doesn’t know exactly
how to address the topic.
• The CEO’s top goals are to continue revenue growth and keep the high profitability. He also wants
“Chromatech” to be recognized for its corporate social responsibility.

3
Let’s work on the BPM-Discipline for “Chromatech”
• What are important values that a BPM-Discipline can bring to “Chromatech”?
• How would you “sell” to the CEO the need to set up a BPM-Discipline?

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