Spain manufacturing plant review

Summary

Following the success of our earlier projects, the Client requested that we review their Spanish operations and establish the potential to increase capacity. The results were dramatic.

Project Background

The Spanish production facilities were operating at capacity and an existing critical customer required a substantial increase in volume to meet their trading activities. Failure to serve this need would inevitably open the Client to competition and the potential loss of a major source of revenue.

Approach

Due to the short timeframe LCP had to undertake the work, we used a compressed RapiSCAN® approach
• Rapid review of operations and identification of potential improvements
• Specify short term critical operational changes (including production line changes) needed to improve capacity
• Implement those changes
• Identify key factory structural changes that will improve material flow and further enhance capacity, where possible implement these

Whilst the physical operational changes were taking place, LCP simultaneously simplified the planning processes and implemented some new, but basic, planning systems.

Client Testimonials

LCP enjoyed a very close working relationship with this Client.

Success Factors

The initial work was completed in 3 weeks with 8 weeks allowed for factory turnaround ... truly a memorable project and high level of intensity

LCP turned the business around and improved the factory productivity dramatically as shown below

Not only was a shift saved but the business was able to secure the additional business it was at risk of losing.

Results and Benefits

Based on the total business review LCP identified:
• 45% reduction in ingredient inventories
• 80% reduction in packaging inventories
• Eliminate need for external storage
• 20% improvement in direct labour productivity
• 30% immediate increase in capacity through operational improvements

Our first wave implementation delivered the following benefits:
• 18% reduction in direct labour through line productivity improvements
• additional 5% opportunity through short-term semi-automated kit implementation
• Eliminated external storage
• 25% ingredients and packaging inventory reduction
• 30% reduction in waste
• Released 30% capacity through productivity improvements.