COST REDUCTION & EFFICIENCY GAINS

THE CLIENT

A leader in manufacturing of personal care and hygiene products, this client markets, distributes and sells essential everyday consumer products across the Feminine Care, Incontinence Care, Baby Care, Consumer Tissue and Professional Hygiene product categories. Some of the Company’s brands have been in the market for over 60 years and its products are used daily in households and businesses across Australia, New Zealand, Fiji and a number of countries in the Pacific.

THE PROBLEM

With competition aggressively price discounting, operational cost reduction and efficiency gains were a ‘must-do’ priority. A focus on the reducing site energy consumption and product waste while also improving product quality provided the pathway to make significant inroads into reducing costs, however a rigorous improvement approach was needed to ensure delivery.

“Even though we knew what it was we had to achieve, we lacked the capabilities to tackle the problems and deliver results. The 8 projects chosen were tough, however significant to our continued success.” (General Manager Manufacturing)

THE GESTALTIX® SOLUTION

Key staff from the site participated in a Gestaltix Lean-Six Sigma Green Belt skill development course, designed to be a learn-do delivery of teh key projects. A disciplined focus on identifying the root causes of problems with facts and data provided the breakthrough’s needed. Within 4 months of starting the projects, greater than $600K pa in cost reductions were being implemented. Formalising the project hand-overs provided ongoing ownership of the performance every day. Even more importantly, there is now a strong belief and capability within the team that there is “more to come”. The results included:

  • $200,000pa reduction in site energy use (Gas and Electricity).
  • $100,000pa reduction in product waste
  • 3% reduction in start-up rejects
  • 3.5% reduction in product raw material usage
  • Improved stock accuracy due to a 20% reduction in stock manual adjustments

There is continued confidence in being able to deliver more, with the new process improvement skills in the team a strong feature into the future.

“The most pleasing part of this result is that we did it ourselves, and now we have the tools & skills to continue on delivering significant results to the bottom line like this.” (General Manager Manufacturing)

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