Dairy3

Our Client is a large national producer of limited shelf life products controlling the majority of the market in the United States. Headquartered in Colorado, they are a leader in sustainable business practices, manufacturing innovation, and premium food and beverage brands including organic and naturally sourced ingredients.

This wholly-owned subsidiary accounts for approximately $1.3 billion in annual sales and employs some 1,350 people across the United States.

Projects were completed in 4 individual Plants to develop and implement a uniform Management Operating System (MOS) with common metrics and Key Performance Indicators (KPI’s) in all Plants, including a comprehensive problem resolution process to drive a culture of continuous improvement.

Project Overview
PVA's Response
The Results

Project Overview

Objectives

  • Installation of a uniform Management Operating System (MOS) across all Plants, including a comprehensive problem resolution mechanism
  • Increased overall plant efficiency by increasing each line’s efficiency allowing for increased throughput and equipment utilization
  • Installation of an annual Plant Capacity Planner to maximize the utilization of equipment and resources
  • Enhanced daily production schedules providing detailed information for each product run
  • To change the behaviors on-the-floor and increase the amount of proactive supervision

Assessment Findings

  • Inefficient line changeovers due to a lack of information and preparation
  • Loss of capacity due to no set standard rates for the lines and machines when running
  • Action plans for issues and problems were not clearly defined and/or documented and variances were not documented, identified or communicated to the Supervisors
  • No follow-up by the Supervisors regarding line downtime or if the lines were running at capacity
  • Line Operators were are not assigned back-up work such as cleaning whenever there was a stop in production
  • Preventive Maintenance of the lines and equipment was not well structured or based on frequency and compliance to the program
  • Inefficient line activities (i.e. re-packing) were not addressed and there was no action plan in place to improve those activities
  • Very little engagement by the Supervisors with their employees during the shift (although the Supervisors were on-the-floor in the production areas, they were either walking around the production floor or observing activities with no interaction with the employees)
  • The Supervisors perception was that their employees know what to do and would ask for help if they needed it

PVA's Response

  • PVA’s process and activities involved and engaged the employees during the project key milestones which focused on the employee’s work habits and routines
  • Establishment of realistic yet challenging targets and communication of results
  • Installed a problem resolution mechanism which allowed for employees to contribute to the continuous improvement efforts
  • Restructured the departments to establish proper crew sizes, reporting structures and communication vehicles
  • Identified the bottlenecks of the lines when running different product mixes
  • Improved the planning and scheduling process to maximize line efficiencies and equipment utilization
  • Enhanced the understanding and utilization of the KPI’s by the Supervisors on-the-floor
  • Reorganized the management structure and reporting requirements to allow for better definition of accountability and expectations at all levels within the organization 
  • Installed an “Accountability Stream” process, defining the various approaches to employ when dealing with employees

The Results

Some significant results obtained by our Client in their different Plants included:

  • Overall plant efficiency has been improved between 15 to 23% in the Plants due to a combination of cost reduction in both direct and indirect labor categories, and a throughput volume increase by better equipment utilization.
  • There has been a reduction of overtime of between 50% and 72% across the Plants.  

Gallons Per Man Hour

There was a 30% improvement in gallons per man hour.

Efficiency Analysis

There was a 23% improvement in efficiency.

Improvement in Supervisory Activities

Long Term Work Continuation

  • A Client Coordinator was trained and certified during the PVA engagement
  • A quarterly audit program of the new Management Operating System was developed and implemented with the Coordinator
  • PVA conducted audits over 18 months to ensure compliance to the continued utilization of the Management Operating Systems
  • These Audits resulted in recommendations and action plans to further identify additional opportunities for improving operations