bulk bags of food ingredients stored in warehouse

Operations improvement study increases food production revenue by $9.8 million

Our food client sought out CRB’s Operations Improvement team to increase production throughput and determine the impact that would have on warehouse sizing. We evaluated two separate manufacturing buildings and three warehouses to create a strategic plan that would allow the client to meet increased demands while limiting capital spending.

Our team shadowed activities and operations at the site to develop block flow diagrams (BFDs) and a discrete event simulation model. This model was validated and used to run ‘what-if’ scenarios to determine the best path forward. Our study’s results provided the client with an actionable plan for meeting their production goals and increasing annual revenue by $9.8 million.

Project Details

Client

Confidential Client

Location

Midwest, USA

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Key recommendations included:

  • Install inline grinder to reduce the number of sugar types used, which would reduce the on-hand inventory and warehouse space by 200 pallet locations
  • New semi-automated bag dumping operations
  • New production line to reduce cleaning/start-up time on the main production lines
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Results:

  • $9.8 million increase in annual revenue
  • Capital investment of less than $ 1.8 million to achieve this increase
  • More than $150K in headcount cost avoidance annually by repurposing staff
  • More than 70 different improvement opportunities were provided
  • More than 700 SKUs were modeled

Increased throughput, maximized space utilization, and leaner operations are all achievable if you know where to look. The above is just one example of how our Operations Improvement team has performed quick studies to help our manufacturing clients meet their production goals.

Ready to hit your goals? Get in touch with the team that can help you.

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