To move the client’s business forward, Mantec undertook an analysis of the business and identified several areas where productivity and hence profitability could be improved. The business went through a significant period of growth during the project, increasing both output and productivity.
Background
The company, part of Danish cooperative employing over 2000 people across Europe, had been consolidated from two operating plants into a single, purpose-built factory in the UK.
Profit margins were low and group management believed that overall performance and profitability could be improved.
Analysis
To move the business forward, Mantec undertook an analysis of the business and identified and agreed several areas where productivity and hence profitability could be improved.
Initially effort was focused on production. It was felt that any early improvements there would add to the bottom line, especially as the business was due to enter its peak period and historically up to 50% of the annual profit occurred during this three month period.
Implementation
As a result of the analysis, a number of actions were taken which benefited and helped to grow the business.
Action
A new management control system was developed and installed. This included setting KPIs for all levels, from line leaders up to the executive.
Benefit
Ensured follow-up and forced management to make decisions in a timely manner and at the right level to drive performance.
Action
A structured series of meetings was developed and installed.
Benefit
Helped to identify issues and drive solutions focussed on improving performance.
Action
Production set-up/changeover times were optimised and the number of changeovers reduced.
Benefit
Increased overall line efficiency.
Action
A new automated planning system was developed and installed within despatch.
Benefit
Significantly reduced the time required to complete the plan and increase overall performance.
Action
Accountabilities and responsibilities were defined, ensuring that managers understand the implications of not completing what they are responsible for.
Benefit
Improved interdepartmental interfaces.
Results
The business went through a significant period of growth during the project, managing to secure all the business from one of the UK’s major retailers.
- Weekly output increased by over 50%.
- Productivity increased by in excess of 30% on average, with 43% increases in some areas of the business.
- Management decisions were taken in a timely manner and at the right level.
Overall, monthly financial results exceeded expectation and were actually the best ever recorded for the business.
