The combined team worked together over a short 1-week period at the plant to analyse process data and costs, capture working practices and operational performance and understand:
- Distribution practices
From this, we were able to create a detailed value stream map and make the following recommendations key to improving efficiency and reducing operational costs:
- Review global inventories and warehouse space utilisation
- Look to determine the optimum WIP and finished goods stock
- Review planning rules – batch sizes and changeovers to meet global requirements
- Material flow – raw, cooling pellets, loading ramps, and offsite storage – sustainable standardised ways of working
- Double handling of bags and stillages – minimise
- Line 3 process is 26% more costly than Lines 1 & 2 – review capacity in Lines 1 & 2.
- Right First Time/Yield loss – reduce 5% reworked from deburr process and 4% wet scrap
- Indirect costs unusually high – review and reshape the team.
- Manual baling process – 67% Muda – Potential saving 30-50% – 100 – 200k Euro
- Reduce warehousing to meet current requirements and reduce costs