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Case Study

Achiev­ing oper­a­tional excel­lence in the food sup­ply chain

2023/03/17

BACKGROUND

The Food Man­u­fac­tur­ing indus­try is a glob­al and high­ly com­pet­i­tive indus­try that is dri­ven by a few core fac­tors, one of which is price.

Con­sumers are often look­ing for the best deal when it comes to food prod­ucts. Man­u­fac­tur­ers need to offer com­pet­i­tive prices while main­tain­ing a prof­it mar­gin to stay in business.

Our Client is a glob­al com­pa­ny that con­nects farm­ers with mar­kets, cus­tomers with ingre­di­ents, and peo­ple with the food they need. It is a trust­ed part­ner for food, agri­cul­ture, finan­cial, and indus­tri­al cus­tomers in more than 100 countries.

THE CHALLENGE

To achieve bet­ter per­for­mance across its inter­nal sup­ply chain, the com­pa­ny need­ed to improve its plant in Brazil. Poor equip­ment reli­a­bil­i­ty and result­ing down­time were impact­ing prof­itabil­i­ty. The tar­get was to improve an over­all increase in Over­all Equip­ment Effec­tive­ness (OEE).

ANALYSIS

The Client com­mis­sioned Renoir to analyse the under­ly­ing issues, iden­ti­fy areas for improve­ment and imple­ment a Trans­for­ma­tion Programme.

The analy­sis iden­ti­fied five areas:

1

Avail­abil­i­ty and down­time management 

2

Fail­ure mode and impact analysis 

3

Wrench time (pro­duc­tiv­i­ty and quality) 

4

Sched­ule sta­bil­i­ty and plan attainment 

5

Work­er and super­vi­sion routines 

The cur­rent effec­tive­ness of the main­te­nance orga­ni­za­tion, process­es, and prac­tices were bench­marked against the main­te­nance pyra­mid world-class stan­dard to pro­vide addi­tion­al clar­i­fi­ca­tion on how process­es and tools could be improved.

PROJECT APPROACH

As a result, a trans­for­ma­tion pro­gram of 22 weeks was agreed to devel­op and imple­ment improve­ments in a sus­tain­able way, oper­ate the com­pa­ny as effi­cient­ly as pos­si­ble, gen­er­ate rapid improve­ments in plant reli­a­bil­i­ty, and reduce costs and increase avail­abil­i­ty. The tar­get was a 3.7% increase in OEE while main­tain­ing oper­a­tional continuity.

“The project helped us to imple­ment the best mar­ket prac­tices for main­te­nance process­es, con­sid­er­ing aspects of man­age­ment and reli­a­bil­i­ty, in a struc­tured way, and there­by improv­ing our process­es, pro­ce­dures, roles and responsibilities.” 

Client Plant Director

The trans­for­ma­tion pro­gram was struc­tured so that sus­tain­able improve­ments to main­te­nance process­es and sys­tems could be deliv­ered through two Man­age­ment Action Teams (MATs): Reli­a­bil­i­ty Man­age­ment and Main­te­nance Management.

The MATs con­sist­ed of a broad range of multi-disciplinary per­son­nel who con­tributed enor­mous­ly to the suc­cess­ful devel­op­ment and imple­men­ta­tion of the man­age­ment sys­tem ele­ments. The Trans­for­ma­tion Pro­gramme start­ed with the Renoir Focus Process®, which fos­tered own­er­ship and sustainability.

RESULTS

As a result of the pro­gram, new per­for­mance indi­ca­tors were agreed, and the entire exe­cu­tion team was trained in how to suc­cess­ful­ly imple­ment per­for­mance improve­ments. The 22-week imple­men­ta­tion phase saw the instal­la­tion of sus­tain­able changes that became stan­dard oper­at­ing prac­tices, such as a Main­te­nance Man­age­ment Process that inte­grates main­te­nance man­age­ment, reli­a­bil­i­ty, super­vi­sion, plan­ning and sched­ul­ing, and execution.

Results:

51% to 85% 

Increase in labor productivity 

83% to 92% 

Increase in base­line plant availability 

81% to 90% 

Increase in base­line OEE 

2.8 : 1 

Base­line return on invest­ment annualised 

Bet­ter use of key main­te­nance method­olo­gies (such as crit­i­cal and chron­ic analy­sis for MTBF and MTTR) led to the improve­ment in OEE.

Because of the improve­ments on both lag­ging and lead­ing main­te­nance KPIs, the project suc­ceed­ed in rais­ing plant avail­abil­i­ty to 92%. The pro­gram was under­pinned by 70 hours of train­ing for main­te­nance tech­ni­cians focus­ing on the gaps iden­ti­fied in the Skills Flex­i­bil­i­ty Matrix.

In addi­tion to the finan­cial ben­e­fits, staff involved in the MATs acquired key skills in change man­age­ment, a cul­ture of con­tin­u­ous improve­ment was estab­lished and a com­mit­ment to excel­lence was fostered.

CONCLUSION

In con­clu­sion, the Client and Renoir col­lab­o­ra­tion improved process­es, pro­ce­dures, roles, and respon­si­bil­i­ties of the main­te­nance func­tion, and achieved the tar­gets of the program.

The suc­cess­ful trans­for­ma­tion pro­gram enabled the Client to imple­ment the best mar­ket prac­tices for main­te­nance process­es in a struc­tured way, there­by achiev­ing sus­tain­able improve­ments with full adoption.

With­in 22 weeks, the sub­stan­tial increase in oper­a­tional excel­lence made a major con­tri­bu­tion in sup­port­ing the company’s com­pet­i­tive­ness in a price-sensitive industry.

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