In the highly competitive and fast-paced frozen food industry, maintaining operational efficiency while ensuring product quality and safety presents a significant challenge.
This case study explores the journey of a leading frozen food processing company that faced critical challenges and how transforming its operations helped them to return to profitability.
Challenge: Excessive scrap and product give away and frozen food spoilage compromising downstream processing was negatively impacting costs.
The company was facing excessive scrap, product give away, and spoilage of frozen foods, which were compromising downstream processing and negatively impacting costs. This situation was exacerbated by increasing pressure from low-cost regions, driving down margins and necessitating a rapid increase in shareholder return. To address these issues, there was an immediate focus on turning the plant around and returning it to profitability. This was achieved by driving sustainability through implementing daily management processes, ensuring a comprehensive approach to overcoming operational challenges and enhancing financial performance.
Solution: Used value-stream analysis to identify significant losses and Implemented Total Productive Maintenance (TPM) to minimize product variation.
Results: The company was able to generate over $3.5 million in annualized savings, improve yield, reduce process variation, and improve sanitation.
- Generated over $3.5 million in annualized savings
- 20-25% improvement in targeted improvement areas. Shifted mean target weight reducing give away
- Reduced process variation, resulting in less scrap and reprocessing
- Improved food safety, achieved a 28% reduction in sanitization time while reducing bacteria growth opportunities, reduced set-up times by 49%