Chiquita Brands International, Inc.Read More
Master Planning Capacity Evaluation
The client wanted a capacity evaluation as part of their master planning effort of a multi-product facility at their West Coast site. Demand in the facility was expected to double. This facility included several core and support functions. It also interacted with and supported other buildings on the site. The goal of this project was to determine the current capabilities and constraints of each function, understand space issues and plan for the future so that this facility is capable of meeting future demand projections over the next five years. The evaluation considered operating strategies, inventory locations, labor and the structure itself. We also looked at our client’s freezer and cooler storage to detemine if the storage capacity was sufficient.
Block flow diagrams (BFD) and discrete event simulation (DES) models helped us define current capabilities and conditions. We then used the model to run different ‘what-if’ scenarios until the forecast demand was met. We identified several bottlenecks and operational wastes in various areas of the facility for which we recommended improvement opportunities with relevant cost and schedule estimates.
Client Challenge: Meet future demand projections. Projected demand over the next five (5) years must be met for building core and support operations.
Our team determined current operating conditions, recommended improvement opportunities, and provided cost estimates for improvement options.
How we helped:
- Understanding system interactions and strategies through observations and interviews with the subject matter experts
- Developed a DES model for all operations in the facility to understand the impact of multiple scenarios.
- Proposed strategies, calculated staging & staffing requirements to meet demand over the next 5 year planning horizon.
- Identified operational wastes and recommended operational improvement opportunities to minimize capital investment and staffing expenditures.
- Prioritized improvement opportunities to determine the best projects for the investment.
- Selected opportunities resulted in a cost avoidance of $7.4MM
- Major modifications to the facility were not required.
- Staffing expenditures are expected to decrease.