A mass consumption food company operated a network of production plants with low levels of standardization, poor communications and a lack of feedback. Together with Matrix, they not only achieved a substantial improvement in results, but also developed a culture of operational excellence.

Context

A leading mass consumption company in Chile had set itself the clear objective of improving profitability at its network of industrial plants. With more than six thousand collaborators, three installations and a processing capacity of more than 550Mt, each shortfall in performance represented an excellent opportunity. However, the silos between the plants, the low level of standardization between processes and the lack of feedback in planning prevented these opportunities from being tackled in a systematic manner. The opportunities were significant but realizing them was highly challenging.

Opportunities detected

In a project which lasted about a year, the company and the Matrix team detected multiple shortfalls and opportunities. The biggest problems occurred for three main reasons:

Methods and processes were not standardized between production plants. Nor were best practices shared between them.
The method for evaluating new initiatives was not sufficiently agile or robust, hindering innovation and the continuous improvement of processes.
Production planning and key processes such as maintenance and supply had to be optimized.

Proposed actions

Matrix recommended the development of an operational excellence program across the three plants. Multidisciplinary teams led by Matrix with strong participation from the client were set up which developed a series of initiatives based on a set of Lean and Six-Sigma tools, especially adapted for the client. The work was organized into three areas: Productivity, Costs and Planning.

The Productivity area sought to increase yield from raw materials and reduce variabilities in the productive performance. Statistical analysis and pilot tests were carried out. Each result was measured to establish and improve the standard for each process.

In addition, opportunities for technological innovation were identified and acted upon. The business cases of the principle investments were evaluated.

The Costs area sought to improve the efficiency of maintenance processes, rationalize use of packing and packaging materials and optimize energy consumption. Through a number of measures, the operation was simplified and standardized.

The Planning area evolved from reactive planning to organized planning with greater visibility. To ensure success and adherence to the new process, it was communicated to key actors.