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THE NEED

Bottling plant was performing inefficiently yielding poor inventory turns, late deliveries, and significant scrap. Management team small business,business turnaround,Small Business Operational Turnaround Advisers,Turnaround Advisers,small business help,small business advocate,organizational management consulting,turnaround companies,manufacturing cost management,turnaround firms,inventory cost management,cost management control,management consulting process,turnaround consultants wanted to increase profitability by improving operational absorption thus opening up excess capacity to eliminate the need for plant expansion.

ROLE

• Led the lean transformation of this 40-year-old firm with the goal of improved capacity utilization.
• Restructured plant operations to consolidate operations to reduce direct and indirect labor. • Introduced a material control system by creating a Plan For Every Part (PFEP) increasing inventory turns 4 fold.
• Incorporated “milk run” logistics systems to reduce overall transportation cost of direct and indirect material.

THE RESULTS

• Eliminated need for plant expansion saving company significant capital.
• The process changes improved gross sales margins with increased absorption and reduced operational burden.