Beverage Producer and Bottler

Rapid growth through acquisition results in declining profit margins and shrinking share value that required a focused "Collaboration Across North America and Beyond" to fix.

Industry And Locations:

Beverage Producer and Bottler
Operated 15 Plants across North America and the United Kingdom
(8 USA Plants, 5 Canadian Plants, and 2 United Kingdom Plants)

Business Situation And Challenges:

Starting as a regional, Canadian bottler of carbonated soft drinks, our Client's business model resulted in rapid international market growth and the acquisition of production facilities across North America and the United Kingdom to supply their demand. Each acquisition added increased operational complexities to the corporation, as the various production facilities did not have common metrics, informational platforms, nor standardized business practices, policies and procedures.

Their acquisitions resulted in rapid revenue growth, but not the ability to effectively manage through changing client requirements and economic situations. As a result, this client was faced with a multitude of challenges, including: declining margins, lack of interplant standardization of systems and metrics, poorly defined roles and responsibilities at all management levels, excessive inventory levels, declining customer service and satisfaction levels, poor organizational morale, and a reactive business culture.

Following a change of ownership, this Client was mandated to turn itself around, to ensure that its asset utilization was optimized, and to instill an internal culture of continuous improvement across all of its operational locations.

PVA was asked to assist this Client in achieving their mandate. After conducting a pilot project in one of their Canadian plants, a North American and United Kingdom roll-out strategy was implemented. This implementation focused on a variety of technical and tactical solutions to our Client's business situation. Ultimately, PVA's strategy focused on driving ownership and accountability throughout their operations, as well as ensuring that the organization was able to continually optimize their effectiveness in an ever changing business climate.

Priority Objectives:

To implement a pro-active culture and to standardize their diverse operating systems into one uniform Management Operating System across their worldwide operations. To achieve their targeted 100% compliance level to their Key Performance Indicators (KPI's) and metrics. These objectives would be primarily attained through the implementation of system elements and by changing supervisory behaviors on the floor.

Pva's Response:

To implement a standardized Management Operating System in all areas (and across all Plants) that would optimize and control their processes and required resources. To provide Managers and Supervisors with the training and coaching required that would increase their levels of active supervision. To develop and implement the following:

• Key Performance Indicators (KPI's) and metrics
• Standards for start-ups, run speed, changeovers and crewing configurations
• Labor and equipment Master Schedules and capacity models
• Communication and Objective Boards in all Plants
• Key indicator and trend reporting at all organizational levels
• Problem identification and resolution programs
• Timely communication and feedback mechanisms to all employees

Project Results:

Some of the results that our Client achieved were (average results shown):

• 18% improvement in can line efficiency
• 16% improvement in bottle line efficiency
• 47% improvement in package changeover cycle times
• 35% improvement in flavor changeover cycle times
• 47% improvement in preventive maintenance attainment
• 30% productivity improvement (hourly labor dollars/equivalent case)

In addition, levels of active supervision increased from 10% to 45% for a 350% improvement.

Perpetuation Of Results:

PVA has completed four System Audits across all sites and ownership has been successfully transferred to our Client. Their Continuous Improvement Program continues to drive their behavioral changes and performance results.