Artisan Food Manufacturer Nets $13M through Operations Interim Lean Management

A world-renowned producer of specialty foods using original recipes and locally sourced ingredients.

$13M
annual revenue unlocked from increased production output
$2M
annual savings realized

Challenge

This organization had grown tenfold in only five years due to a significant increase in sales. Production was operating at 20% over capacity and the Client was experiencing operational capacity constraints and quality issues. They realized the need to turn around their food production operations.

Discovery

TPG provided support through an interim Director of Operations who conducted a comprehensive review of all food production areas including forecasting, purchasing, production, and packaging. Through this assessment by us, we identified capacity and cost savings opportunities in their operations. Concrete actions were taken to increase production capacity and streamline operations through:

  • Development of a portfolio of Lean projects that increased capacity and balanced product lines
  • Performed a complete standard work analysis on all production activities to create a standard-level agreement for performance management
  • Created an automated KPI dashboard to allow for effective visual management
  • Developed an operational infrastructure that supported an additional $12M in production
  • Supported the Microsoft Dynamics GP ERP solution implementation and Ascentis HR ERP
  • Centralized all process documentation into an integrated document and process management system

Value Created

As a result of our interim management support, this client realized immediate financial benefits and long-term business maturity:

  • Production revenue increased from $42M to $55M with forecasts trending to $75M in the next few years
  • 3 Facilities realized over $2M combined in annual cost savings¬†
  • 23% Boost in additional capacity
  • Vetted and hired a full-time Director of Operations to replace our interim resource, providing orientation to transition all existing and new accountabilities back to the client

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