Mantec helped to create a change programme which focused on the weaknesses in operational areas, the program resulted in a production increase of around 20 percent and yearly savings equal to almost two time the project cost.
Background
The company is a privately owned manufacturer of food products, the biggest in Scandinavia within its niche. To make better use of its production resources and adapt its cost situation to the market conditions, Mantec was hired as a partner in a far-reaching improvement programme.
Analysis
An initial study performed by Mantec identified improvement potential in the following areas:
- utilization of work time and manning;
- planning and production norms;
- leadership;
- machine utilization; and
- material flow.
Based on the initial study, Mantec helped to create a change programme which focused on the weaknesses in these areas of operation and developed leadership skills to enable modernized, pro-active management of the business.
Main focus areas
Together with management, Mantec established a number of sub projects which used the tools available in Movex Enterprise Resource Planning to set and achieve specific goals for six main focus areas.
Main planning, detailed planning, material administration, system support/tools
Goals: to create tools and working routines for planning, procurement, production, supplies and finished goods.
Machine productivity
Goals: to increase the value adding operation time (time in production with a saleable product); create conditions to enable more predictable production output; develop a better basis for production and maintenance planning.
Operating procedure
Goals: to find more efficient use of the personnel resource, consequently lowering manning intensity. This would also give a better foundation to manning and production planning during seasonal variances. In practice, manning reduction was also created through better use of planned production time, more optimal planning and the production of a reduced number of articles.
Management system, goals, organisation
Goal: to install a working control deviation vs. goal attainment system so that different leaders were able to access appropriate tools to more efficiently steer and follow up on their operations.
Internal accounting
Goal: to assess the possibilities of both simplifying and improving the methods of recording and analysing material costs and changes in stock levels.
Leadership training at all levels
Goals: to reach a common understanding and acceptance for the need for change, and supervisors’ role in the change process; train leaders in the improved management system and in deviation handling. Clarifying leadership roles and reinforcing management in their roles as leaders of daily operations was vitally important to the success of the project.
Results
Owner and management view on the change programme was that Mantec worked as catalysts, which meant that it was the company itself which owned the development process, while Mantec acted as coaches and leaders in the development of the new systems and routines. Headline benefits to the company have been that:
- Productivity increased by more than 20%
- All leadership levels now have better control over planning and production
- Cooperation between operators and middle management has improved dramatically
- Yearly savings equivalent to an ROI of 190%
