Case Study

Optimizing production at a beverage manufacturer

Increasing throughput by 10% and doubling hiring rate through focus on process, standardization, and leading practices

A beverage manufacturer with operations spread across the United States was struggling with production inefficiencies and staffing gaps. As the issues compounded, line efficiencies decreased, plants struggled to staff production lines, and a culture of firefighting became prevalent. Leadership partnered with WP&C to reduce production line downtime and increase staffing levels within the plants through a focus on processes, standardization, leadership training, and continuous improvement. Together, this accelerated improvements to line efficiencies and increased staffing levels allowing for significant reductions in lost production time.

Efficiency was down across the board, with the performance of most plants below 50%. Staffing shortages, compounded by rampant turnover, led to insufficient maintenance support and unstaffed lines. With more than half of all downtime due to mechanical stops along with a lack of focus on continuous improvement there was an urgent need for process improvement and standardization. Furthermore, company-wide improvements in both maintenance and staffing had fallen flat in the past due to plants operating independently, with few attempts to share best practices and minimal cross-plant communication.

1. Plant Assessment

We began by conducting plant assessments to understand and analyze current performance and plant utilization. Supported by OEE waterfalls, this enabled WP&C to clearly quantify and categorize losses to line efficiency and develop a recovery roadmap. This roadmap included improved maintenance practices, recruiting support, continuous improvement, and supervisor training.

 2. Maintenance
We built out preventative maintenance plans across all key lines, pinpointed critical spare parts, and created plans to stock and replenish parts inventory.

3. Staffing
We implemented and leveraged a new applicant tracking system to accelerate job posting and hiring, executed hiring process improvements to improve applicant engagement, and created a staffing playbook to incorporate metrics into the recruiting team’s strategic decision making.

4. Continuous Improvement
We focused on line-level improvement activities and leveraged kaizens to create improvement plans for immediate implementation that balanced benefit and effort to quickly reduce downtime and improve throughput.

5. Supervision
Using WP&Cs proven Supervisory Leadership Model, we conducted training sessions with front-line leaders to provide a framework for taking action and driving continuous improvement.

WP&C engaged managers and supervisors across plants and functions to improve efficiency and reduce waste by:

  • Regularly ascertaining key drivers of downtime and executing kaizen events to demonstrate key skills and develop line specific roadmaps to improve efficiency
  • Verifying preventative maintenance tasks are scheduled and completed at regular intervals
  • Utilizing an applicant tracking system to set baseline hiring metrics, track data, and use it for strategic staffing decisions
  • Maintaining a continuous improvement cadence to track and drive root causes to completion
  • Establishing and maintaining a continuous improvement training program to drive operational excellence

Downtime

We split downtime causes into several categories to measure what was causing the bulk of downtime. These OEE waterfalls allowed us to pinpoint our focus for maximum benefit.

  • Increased plant wide efficiency by 6.7% resulting in improved profitability of $1.7M annualized over FY22 
  • Doubled pace of hiring (production workers) in less than 90 days
  • Established a preventative maintenance program for 10 production lines that led to immediate change in line performance by more than 3%
  • Improved supervisor capabilities including leadership training and basics of lean methodology

Applicant Funnel and Downtime

Efficiency was down across the board, with the performance of most plants below 50%. Staffing shortages, compounded by rampant turnover, led to insufficient maintenance support and unstaffed lines. With more than half of all downtime due to mechanical stops along with a lack of focus on continuous improvement there was an urgent need for process improvement and standardization. Furthermore, company-wide improvements in both maintenance and staffing had fallen flat in the past due to plants operating independently, with few attempts to share best practices and minimal cross-plant communication.

1. Plant Assessment

We began by conducting plant assessments to understand and analyze current performance and plant utilization. Supported by OEE waterfalls, this enabled WP&C to clearly quantify and categorize losses to line efficiency and develop a recovery roadmap. This roadmap included improved maintenance practices, recruiting support, continuous improvement, and supervisor training.

 2. Maintenance
We built out preventative maintenance plans across all key lines, pinpointed critical spare parts, and created plans to stock and replenish parts inventory.

3. Staffing
We implemented and leveraged a new applicant tracking system to accelerate job posting and hiring, executed hiring process improvements to improve applicant engagement, and created a staffing playbook to incorporate metrics into the recruiting team’s strategic decision making.

4. Continuous Improvement
We focused on line-level improvement activities and leveraged kaizens to create improvement plans for immediate implementation that balanced benefit and effort to quickly reduce downtime and improve throughput.

5. Supervision
Using WP&Cs proven Supervisory Leadership Model, we conducted training sessions with front-line leaders to provide a framework for taking action and driving continuous improvement.

WP&C engaged managers and supervisors across plants and functions to improve efficiency and reduce waste by:

  • Regularly ascertaining key drivers of downtime and executing kaizen events to demonstrate key skills and develop line specific roadmaps to improve efficiency
  • Verifying preventative maintenance tasks are scheduled and completed at regular intervals
  • Utilizing an applicant tracking system to set baseline hiring metrics, track data, and use it for strategic staffing decisions
  • Maintaining a continuous improvement cadence to track and drive root causes to completion
  • Establishing and maintaining a continuous improvement training program to drive operational excellence

Downtime

We split downtime causes into several categories to measure what was causing the bulk of downtime. These OEE waterfalls allowed us to pinpoint our focus for maximum benefit.

  • Increased plant wide efficiency by 6.7% resulting in improved profitability of $1.7M annualized over FY22 
  • Doubled pace of hiring (production workers) in less than 90 days
  • Established a preventative maintenance program for 10 production lines that led to immediate change in line performance by more than 3%
  • Improved supervisor capabilities including leadership training and basics of lean methodology

Applicant Funnel and Downtime

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