Performance review (RapiSCAN)

Summary

LCP deployed its RapiSCAN® methodology to undertake a Productivity Review of its manufacturing operations across 9 factories in the UK and 12 in Northern Europe, each regional review taking approximately eight weeks.

Project Background

This Food Manufacturer was under substantial financial pressure, supplying retailers with ready meals and desserts in a low margin trading environment.

This project was initiated to see where cost reductions could be made and improvement in the speeding of supply chain activities to better serve the customer.

Approach

The Client wanted a quick but authoritative and quantified study to be undertaken in order to pinpoint precisely the actions that would lead to a significant operating cost reduction.

LCP ran two programmes each of approximately 8 weeks to tackle the UK first, then Northern Europe. The work, based on our RapiSCAN® methodology, was a combination of:

• Detailed analysis following a modified SCOR structure that is routinely used in LCP, with a comprehensive and standardised set of analytics
• Factory Operations Review - a small group reviewing each factory in turn in order to provide a consistent and comparative analysis

The findings were synthesised and represented in various ways to best facilitate understanding, e.g.:
• Temperature charts
• Multiple forms of representing analysis
• Mapping of processes and failure points
• Anecdotal commentary

A series of workshops run with the factory management teams to agree that our analysis and ensure our interpretation of observations was fair.

This was followed with the supply chain management and regional management team to discuss the detailed findings, scale of benefits and recommended actions.

Client Testimonials

Two teams were established by LCP, focusing on either analysis or manufacturing operations, that worked independently. They then combined their learnings, using each other and the Client Operations Management Team as a validation medium.

This process enabled the Client to very quickly internalise the findings and acquire a much deeper understanding of the findings and the resulting change actions that would need to be in place.

"It was difficult to distinguish Client and Consultant during the process, we were working so closely and as one team" commented the Client, " the analytical rigour is the best I have ever seen, especially when tied back to our P&L".

Success Factors

The findings demonstrated that substantial productivity improvements were available and the financial return to the business from this project massive.

The single biggest challenge was bringing very different perspectives on the direction the business should take and summarising these into actionable items - this was greatly helped by the unambiguous analysis and benefits statements.

The cultural richness of the project was both a challenge and added a richness to the project.

Results and Benefits

‘Quick wins’ to fund longer-term investments
Assessment of likely timescale to deliver benefits
50% reduction in ingredient and packaging write-offs
30% reduction in ingredient and packaging inventory
33% filling & packing line productivity improvement
60% OEE (30% capacity) improvement
27% reduction in production waste
25% reduction in finished goods write-off
3% reduction in transport costs
10%-16% cost of goods improvement