Artisan Food Manufacturer Nets $13M in Production Output from Operations Interim Management

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

$13M
annual revenue unlocked from production output
$2M
annual cost reductions

Challenge

This organization had grown tenfold in only 5 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 areas of food production including forecasting, purchasing, production, and packaging. Through this assessment 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 full 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 $42M to $55M with forecasts trending to $75M in the next few years
  • All 3 facilities realized over $2M in cost reductions and a 23% boost in additional capacity
  • Vetted and hired a full-time Director of Operations to replace our interim solution, providing orientation to transition all existing and new accountabilities back to the client

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