PACKAGING SECTOR – PROCESS IMPROVEMENT

THE BRIEF

Some of the client’s business systems and practices were overly dependent on individuals and local knowledge and they recognised that they needed to develop strong operational procedures and systems that are independent of this local knowledge and continuous manual intervention. With a tight Management Team, they must continue to work “in the business” and service their customers, they engaged our support to help work “on the business”. An external experienced eye, who could help develop best practice management tools and techniques was required. This support as covered by the InvestNI Interim Management Program.

The project primarily covered a number of areas mostly around the development of improved business management systems and allocations of roles and responsibilities within the team. A small number of basic KPI’s were required in order to evaluate business performance at a glance.

There was also a requirement to reduce the “firefighting” and develop a system to pursue long-term corrective actions and develop a problem-solving approach to deal with issues such that they “find a problem, fix it, stop it from coming back”.

THE IMPLEMENTATION

While part of the Interim assignment involved Operational Support, we devised a plan to deliver immediate and long-term benefits.  The project focused on the following:

  • Development of Monthly Sales Meetings, with agreed monthly targets for “Top 6” Customers.
  • Assignment of Customer Account Managers
  • Formal recognition and establishment of a Management Team
  • Roles and Responsibilities clearly defined for all members of the Management Team
  • Examination of cost structures to establish a costing model, and a rough cut Profit and Loss model
  • Annual Goals broken into 90 Day Action Plans – with weekly accountability for goals
  • Development of business-wide KPI’s
  • Inventory reduction Targeted, with emphasis on “slow moving” stocks

THE SOLUTION

We were engaged to provide the solution, based on our previous experience of implementing process improvement, strategy development and delivering clear project plans.

Our solution involved combining already existing and successful activities with best practice, to deliver more value-added activities, removing waste (delays, rework, duplication), focusing on immediate and long-term benefits.

THE RESULT

  • Despite losing 2 largest contracts due to external circumstances, revenue grew by 10% on previous year, on all other business.
  • Net Margin increased by approx 8% on previous year due to focus on Margin based pricing model
  • Development and Establishment of quarterly Financial reviews.
  • Internal Non-Conformances reduced by 50% in 6 months.
  • At-a-glance weekly P&L developed
  • Development and Implementation of a visual management system for production planning and control
  • Weekly KPI reporting, followed by the weekly review.
  • Stocks reduced by approx 8% over the full year, resulting in improvement cashflow.

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