Interim Production Manager Helps Manufacturer Meet Demand
IXPA’s partner in the USA was contacted by a specialized international premium manufacturer of hydration products. The company was experiencing significant growth and was struggling to keep pace with demand.
An interim production manager was appointed who conducted a one-day assessment of the business and its operations. Major opportunities for capacity gains and waste reduction were identified which required no investment. This provided the client with a new approach to its manufacturing operations, and also demonstrated the value of taking an ‘outside look’ at the business. The interim production manager was able to oversee the implementation of the recommendations.
Manufacturing performance and stability were vastly improved, key manufacturing metrics were established for the first time, and the manufacturing process adjusted to reduce operating time and cost. Key results were:
- Completion of the weekly production plan leapt from < 20% to > 98% within one month
- 52% improvement in “first line” capacity and 28% improvement in the “second line” within 3 months
- 22% reduction in direct labour employed and a reduction in the work week to four days while “in-sourcing” $100,000 per year of special work
- 33% reduction in scrap within three months, rising to 67% within five months with the follow-up work
- Annual cost reduction equalled $1.3m, while the consultant cost was $0.13m – a 10:1 ratio