What if you could achieve a 25% throughput increase?

With Proudfoot, you can.

   

A LARGE HIGH-SPEED, injection-molding plastics manufacturer had grown through acquisitions resulting in inconsistent operating processes.

The CEO wanted to reduce total costs while improving delivery capabilities through plant consolidation, supply chain redesign and footprint reduction. He recognized the need to place special emphasis on optimizing the supply chain through the reduction of fixed operating and transportation costs across the network.

Better machine utilization was also needed to determine the right production levels to reduce operating costs.

Management realized this project was critical to the company’s viability. They needed to enhance production capabilities by retaining the best machinery and discarding obsolete equipment.

TRANSFORMATIONAL APPROACH

Working together with Proudfoot, the team:

1

Conducted a detailed analysis of the current baseline supply chain structure.

2

Ran optimization models for seven different scenarios to find the lowest cost solution.

3

Evaluated seven scenarios and determined the best alternative with the right cost structure.

4

Created a detailed budget and roadmap for the execution of the network consolidation.

5

Installed process and behavioral improvement to free up capacity and plant consolidations.

Implemented a consolidation strategy based on simulation modeling to optimize plant layout and reduce freight.

Implemented SMED (Single Minute Exchange of Dyes) and established a change-capable culture across all sites.

Used SPC (Statistical Process Control) to control material weight variations.

Standardized all processes across all 4 businesses to develop the “One Company Way”.

“We needed best practices disseminated quickly and effectively across our network so we could be much more responsive to our customers’ needs.”

Client CEO

REMARKABLE RESULTS

  • 52% increase in machine utilization
  • $8.6M in reduced operating costs
  • $2.5M in annual SG&A cost reductions
  • 20% increase in throughput
  • 23% reduction in finished goods inventory
  • $20M achieved in annualized benefits
  • 20% reduction in freight costs
  • 50% reduction in maintenance backlog

The consolidation plan was completed within the 150-day timeline and the manufacturing footprint was reduced from 8 plants to 4, scrapping 60 machines and relocating 19 machines.

The remaining sites were transitioned to the same system which allowed the client to have greater control over scheduling and forecasting, as well as inventory management.