Facility Operations Improvement Study

Confidential Client Location: Midwest, USA
This Midwest Food Client needed to satisfy increased throughput demands. It was also the intent to understand the impact of these increased demands on the warehouse size. The scope included two separate manufacturing buildings and three warehouses. CRB utilized the Operations Improvement (OI) approach and toolset to allow the client to meet increased demands, while prioritizing capital spending and providing them with a strategic plan.

Engineers shadowed activities and operations at the site, developed Block Flow Diagrams (BFDs), and verified these with area owners. Based on approved BFDs, a discrete event simulation model was developed. This model was validated and used to run 'what-if' scenarios.

Key recommendations included:

  • Install inline grinder to reduce the number of sugar types used, to reduce the on-hand inventory and warehouse space by 200 pallet locations
  • New semi-automated bag dumping operations
  • New production line to reduce cleaning/start-up time on the main production lines.
Results:
  • $9.8 M increase in revenue
  • Capital investment < $ 1.8M to achieve this increase
  • Over $150K in headcount cost avoidance annually by repurposing staff
  • Over 70 different improvement opportunities provided
  • 700+ SKUs modeled.
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