Wood, Paper & Forestry-102
The Situation:
A flexible packaging converter found itself unprofitable and in jeopardy of continuing operations. The Highland Group was asked to assist the client in reducing annual operating expenses by at least 20% and increasing sales by 20%.
The Driver Goal:
- Reduce fixed and variable operating expenses by at least 20% on a run-rate basis by the end of the year.
- Increase equipment utilization by at least 60% on a run-rate basis by the end of the year.
- Increase sales by 20% by the end of the year.
Actions Taken:
- Designed and implemented a company-wide reorganization, including a new marketing function
- Implemented process control and quality improvement programs to reduce process time and scrap
- Improved overall equipment performance using 5S (sort, straighten, shine, systemize, and sustain) and SMED (quick changeover) techniques
- Designed and implemented System for Management Reporting (top to bottom) and conducted Supervisory/Managerial Training Workshops
- Developed and implemented a product development life cycle and project management system
- Developed and implemented a sales plan, sales management system and training of sales representatives
- Implemented a company-wide Individual Performance Management System and developed job descriptions for all positions and individual annual goals for all employees
The Results:
- Reduced fixed and variable operating expenses by 25%
- Increased equipment utilization by 68%
- Achieved profitable position and identified additional improvements and opportunities
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