Targets: Cost reductions and productivity improvements

The overall goal was better profitability through cost reductions and productivity improvements. The customer asked us to come up with a common Operational Excellence approach, covering all processing and packaging equipment, and implement it at eleven of their manufacturing plants. Apart from addressing tangible production efficiency issues, such as stoppages and equipment breakdowns, it was also important that this was a maintenance service solution that could support an optimised human resource utilisation – and build an even safer working environment for employees.

The target for a two-year period is to significantly reduce overall cost.

Revised and improved maintenance services

Ensuring immediate results was of the essence. Our Tetra Pak Expert Services team was able to quickly start to deliver improvements on location – the team very much “hit the ground running”. An evaluation of the existing operational set-up showed that a Tetra Pak Total Productive Maintenance (TPM) system could deliver the cost savings and productivity targets the customer was aiming for.

 We used a three-phase implementation plan, aiming to deliver innovative, future-proof solutions focused on the customer’s needs:

  1. An opportunity analysis at each plant to understand and confirm the range of potential local savings.
  2. Early impact improvement activities to deliver quick wins.
  3. Implementation of a full TPM program across the plants, using our global experience. The program ensured that the early improvements made at each plant were sustained and supported the development of a continuous improvement culture, across all plants.

In parallel with activities at each plant, the Tetra Pak team continues to work closely with the customer’s Human Resources organisation to ensure that the program builds an even safer working environment and that it is supported with staff training. Furthermore, the team develops a framework to measure cost savings in cooperation with the customer’s financial department.

US$6.5M saved in nine months

We improved the customer’s efficiency using our expertise to help them get the most from their operations. Through effective and systematic improvements of equipment, processes and people, costs were reduced by US$6.5 million over the first nine months of the project. In addition, Overall Equipment Effectiveness (OEE) has improved by 5% overall.

Summary, first nine months:

  • Overall Equipment Effectiveness (OEE) improved by 5%
  • Costs reduced by US$6.5M
Machines, service engineers and factory workers.