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.
- 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
- 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 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
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.
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