Increased profit by improved raw material utilization
– A business case from Europe
Link to the full article: Business case optimization
From consideration to financial gains
A major international meat processing group believed that they as an organization had the potential to be more efficient and focused towards yield. Further they considered either to use internal or external resources to uncover these potentials.
The conclusion was made that the company would have implemented the ideas if they had seen them which weren’t the case. They therefore decided to use external consultants for the improvement process because an extra set of fresh eyes always looks different upon things.
The contact to Enavigo Consult was established and a general fact-finding analysis was conducted. The fact-finding analysis exposed several possibilities for improvements and Enavigo Consult was asked to go one step further in the production process. This led to the more detailed deviation analysis on all production sites. The deviation analysis disclosed how far the client was from both international and internal “best practice” regarding both process and product wise.
The overall purpose of the deviation analysis was to determine the actual “performance loss” and based on the analysis starting the implementation process based on the “top 10” areas with the highest financial potential – in other words to choose the easy pickings.
About the analysis: The client wanted to rethink their standard procedures and to challenge the mindsets: “we know how to do it” and “this is how we have always done it, so this must be right”. Instead, every single standard procedure was up for questioning and rethinking.
Through the deviation analysis and a thorough analysis of the observations made on site, Enavigo Consult provided the group with:
- Key areas for improvement
- Economic potential if implemented
- How to implement the changes
The improvement processes quickly showed improved yield, increased effectivity and productivity as well as an overall improvement in work environment.