Voltas is a large Indian air conditioning company and one of the world's premier engineering solutions providers and project specialists. Its Projects group provides heating, ventilation, and air conditioning (HVAC); refrigeration; and electro-mechanical services across buildings, healthcare, hospitality, urban infrastructure and industrial segments.
The Domestic Projects Group’s (DPG) growth and profitability prospects were hampered by several factors causing significant cost variance and schedule overruns in projects, thereby increasing material, service and overhead costs. A sustainable program for continuous improvement in key performance metrics would not only help enhance the DPG’s systems and processes, but also boost profitability and competitiveness.
Accenture Strategy collaborated with Voltas to develop an operational excellence program focused on cost reduction, schedule variance minimization, estimation accuracy enhancement and a robust contract management system to address and streamline all stages of the project lifecycle from estimation to handover to the customer.
Voltas has already achieved a 7.6 percent cost reduction over the addressed cost base, 700 basis point improvement in gross margin, and an eight-fold improvement in schedule adherence. It has institutionalized leading processes and practices in project management, procurement, estimation and contracts and claims management into its operations, positioning it for sustainable growth and competitiveness.