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Food Processing Sector

Company: Not Disclosed

Service: Business and Operations Improvement

Sector: Food Processing; 70 employees

performance-improvement

Team BDS helped this company to achieve its highest net profit in over 15 years trading.

The focus was placed on:

  • Cost Control
  • Operational Efficiency
  • Quality Systems Improvement
  • Management Development

Being a craft based industry, training and performance were critical. The output of operators was too varied and quality performance was an issue. Customer complaints were costing, on average, €200k/year and productivity was 40% of the achievable value.

Through process improvement, quality system changes and training, the performance on the factory floor was dramatically improved and quality to customers was transformed. Productivity increased by 64% and cost of customer complaints reduced by 85%.

Management roles and structures have been changed, and a business-wide system of KPI’s and proactive management practices have been implemented to drive further change and improvement.

While a price reduction of 30% (revenue decrease) was imposed by outside market changes, profits increased significantly as shown below:

 

Key Measure 2008 2009 % Change
Net Profit €120k €510k (+325%)
Tonnage Throughput (per week) 72.5 118.8 (+64%)
Cost of Customer Complaints €200k €30k (-85%)

 

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