As per the industry classification benchmark, this industry sector includes the following subsectors –
At a beverage unit, it was noted that increase in productivity was critical for reaching the year 2010 business goal of cost reduction. The blending process had not been able to meet its volumes target since March 2007. If productivity is increased to 3 cartons per hour, it could result in increase of margins by $54,000 p.a. Hence, there was an urgent requirement to increase productivity.
The higher the productivity, the better the function is able to insulate itself from unexpected staffing challenges and/ or unexpected spikes in volumes.
A Lean Six Sigma project was launched. A value stream map was used as the key tool. Cycle time versus Takt time study showed imbalance at various steps of blending. Layout changes, speed changes were initiated. Labelling complexities were reduced through a high level of standardization. One month of persistent effort resulted in significant improvement in monthly volumes. Subsequently, the year 2010 volume targets were met.