Manufacturer of Consumer Goods

COUNTRY:  United States

PRIORITY OBJECTIVES:

The principal priority for the Client was to establish the correct level of resources to the volume of work for all areas in order to establish a cost structure which would allow them to maintain their ‘Made in America’ corporate objective. This was coupled by the need to instill an enhanced culture of Continuous Improvement in the organization while maintaining a sense of belonging and contribution within their local community.

PVA’S RESPONSE:

For every area worked in PVA had to develop comprehensive Management Operating Systems (MOS) that communicated an effective plan and measured actual results to that plan. Systems were subsequently installed that level loaded the plant by re-establishing inventory measures which highlighted core products and other products into a Tier Structure. PVA also established an inventory point, not allowing additional value added to be put onto a unit until a demand had been confirmed beyond this point.

This in turn forced a SKU analysis that spotlighted that every customer needed to receive the same priorities regardless of requested volume, spurning a ballooning SKU structure and subsequently a growing inventory of low turnover products.

Additionally, all Departments were utilizing optimized scheduling concepts to properly crew their Departments to the volume of worked required and at the proper work activity standards.

This resulted in the Client having new cost structures matched to realistic sales requirements across the organization.

PROJECT RESULTS:

Some of the results that our Client achieved were:

• labor cost reductions
• increased flexibility in the work force
• increased productivity
• decreased production rejects

In addition, employee communication, involvement and morale has also improved, resulting in a manufacturing organization that is able to respond proactively to changes in business requirements, while maintaining the quality product that it is known for.

Additional work was completed within the Support Areas, including Marketing, Sales, IT, Finance, Accounting, and Human Resources. These areas all implemented enhanced MOS elements that drove accountability throughout their areas, and streamlined process and procedural activities, which is resulting in more effective departmental performances.

PERPETUATION OF RESULTS:

To ensure the perpetuation of results, a Coordinator Program as well as a Continuous Improvement Process (CIP) was implemented during the project, to support the installation of the enhanced managerial behaviors, Management Operating Systems, and process and procedural enhancements.

However the critical perpetuation tool was the enhancement of the Executive Review Meetings, which included an Executive Report, Improvement Evaluations, and plan versus actual discussions, including action plan communication to address variances. In combination these initiatives drove a new culture of accountability and continuous improvement throughout the organization.

VERBAL:

“If we wouldn’t have engaged PVA we most likely wouldn’t be here talking about it today”. - President and CEO