Productivity Improvement
Case 5: Capital And Labour Productivity Improvement In Supply Chain - Minimizing Personnel and Product Losses In Food Manufacturing Plant
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Client Situation
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Client wished to improve profitability in one of the plants
and was in the opinion that there is potential in direct labour
costs. Therefore client initiated a project to define plant's
current personnel costs per task to determine the needed number
of personnel in the future. In addition, client wanted to reduce
production losses in the plant.
Objective of the project was to define needed number of
plant personnel and at the same time find ways to reduce
production losses.
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PlaNet's role in the project
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- PlaNet measured the total time used for each task within
client's production and warehouse
- PlaNet defined the working standards based on
measurements
- Needed number of personnel in production and warehouse was
defined together with the client and development plan to carry
through the changes was established
- Follow-up for defining the actions for reducing production
losses was organized and carried through with the client
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Solution and client benefits
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- It was estimated together with the client that the needed
number of workers in client's production and warehouse was 20%
less than current number of personnel
- Defined actions for reducing production losses lead to
savings of 0,5 M€ per year
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