Lean Transformation Program (LTP) for the largest food flavor and fragrance company to streamline operations end to end, achieving industry-leading profitability from world-class operating efficiency.
Profitability was steadily declining and attempts to reduce costs were failing and even leading to greater instability, further eroding profitability and disappointing shareholders. To prevent further deterioration, the management team hired external support to help rectify the situation.
Factories produced simple products, sequentially, in large batches. Capabilities were inadequate to meet demands. Increasing complexity led to more waste, variability, firefighting, longer lead times and higher costs. Performance and morale suffered, widening the gap between actual and targeted profitability.
Design and deployment of an operations-centric Lean Transformation Program (LTP) with focus on capital- and labor-intensive processes to streamline the way products are created, made, moved, and sold. By building new capacity and reorganizing people and processes, complex products can be manufactured in small batches with mass production efficiency and delivered just in time (JIT) to major food and beverage manufacturers.
The implementation of 400+ improvement projects in 20 factories not only closed gaps, but also set new performance records. Throughput rate and productivity doubled in key areas through targeted waste reduction, load balancing and flow management. The program contributed USD 36 million to earnings, and 400+ people have been certified as Agile Lean Six Sigma Yellow Belt, Green Belt, Black Belt to sustain the new way of working and leading.
Facts & Figures
- Industry: Food Ingredients
- Revenue: USD 5.1 billion total
- Scope: Operations and Quality
- Focus: 20 sites in 14 countries
- Duration: 36 months
- Support: 600 days
- Role: Lean Transformation Manager
- Trained: 2,000+ key people
- Certified: 461 as Yellow, Green, Black Belt
- Impact: USD 36 million (93% savings, 7% growth)