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Production and Labor Efficiency Improvement Study
The client wanted to improve production operations and labor efficiency in their Western USA facility. This facility produces and packages liquid and powder nutritional products. The goal of this project was to improve the facility, operations therein, and reduce operating and material handling and distribution (MH&D) cost.
Our team developed static block flow diagrams (BFDs) and a dynamic simulation model to clearly define current capabilities and conditions. The model was then used to run different ‘what-if’ scenarios, implementing operational improvements and MH&D recommendations to evaluate its impact on headcount reduction. We also developed options to improve ergonomic and safety aspects during MH&D process and provided cost estimates for each option.
Client Challenge: Reduce headcount
Reduce the cost associated with headcount by improving efficiency in the facility
We determined current operating conditions, recommended improvement opportunities to reduce headcount and provided cost estimates for improvement options
How we helped:
- Understanding system interactions and strategies
- Proposed conveyor systems and automated dumping operations for improving material handling capabilities and ergonomics
- Provided inputs to optimize conveyor speeds, back pressure and placement of sensors
- Identified operational wastes and prioritized improvement opportunities
- Overall savings of more than $3.8 million annually
- Headcount reduction for the entire site by 40%
- Cycle time reduction in MH&D procedures by more than 50%