Key Objectives
- Identify synergies and cost improvement opportunities
- Recognize specific improvement initiatives
- Size and prioritize initiatives
Our Approach
- Review four different manufacturing plans making milk, yogurt, cheese, and juice
- Map manufacturing lines, understand cost experience curves
- Prepare a synthesis of the above in a poly-parametric model
- Based on benchmarks and historical data, identify focal areas / hypotheses
- Test hypotheses and map cost driver trees per line based on focal areas
- Identify and size specific improvement opportunities with corresponding initiatives
- These initiatives range across the following: labor efficiencies, standardization and processing improvements (incl. use of equipment, forecasting accuracy, production planning etc.), new technology deployment, product / specification redesign (incl. use of raw materials, economies of scale, SKU rationalization etc.)
- Prioritize implementation based on estimated impact and effort / resources required
- Prepare concrete action plan with milestones and savings phasing per quarter
Impact for our Client
- Identified 40 initiatives with €4.5 mio expected savings
- Encouraged benchmarking and best practice transfer among the different lines / plants
- Set up foundation for continuous improvement
Cost Experience Curves for Losses
SKU Rationalization Impact Assessment
Action Plan for Specific Plant
