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IFA Opportunity Analysis

Cost per case reduced by 25% in 6 months through labour optimisation

OptimumFXCase Studies › IFA Opportunity Analysis

A blue chip manufacturing company had plateaued on their performance improvement curve and wanted to understand where they should focus to take their operation to the next level.  Their goal was to increase OEE and reduce Yield loss to ultimately reduce the manufacturing cost per unit.

The problem

We used our IFA Opportunity Analysis process to fully understand where the biggest gaps were.  This process looked at the information (available data), focus (analysis and meetings), and actions (effectiveness of actions).  This was combined with the skills of the people and the culture of the business to ensure a full ‘snap shot’ was assessed.

Amongst other smaller opportunities the IFA OA revealed two major ones:

  1. The team was actually focusing on the wrong metric to reduce cost due to the balance of equipment and people.  By focusing on productivity and optimising labour, rather than equipment OEE would yield significant benefits.
  2. The information for yield loss was not specific enough and there were no routines in place to focus on this data, which led to very few improvement actions.

How we helped

We worked together with the site team to create an action plan and prioritise it.  Much of the action plan was within the teams’ capability, OptimumFX helped in a few areas – specifically to gather better data in a more rigorous way.

The results

Over the next 6 months the manufacturing cost per case was reduced by 25% through labour optimisation. A site based yield improvement team used the new data and process to incrementally reduce the losses by 50% over a 12 month period.