Labor Productivity
Rapidly Capturing Manufacturing And Logistics Cost Reduction Opportunities At Ethnic Foodservice Products Manufacturer
Captured $1.2MM in operations run-rate savings in 12 weeks at an ethnic foodservice and retail private label products manufacturer by implementing shop floor management best practices. Gotham worked on the shop floor to: observe operations; identify potential improvement opportunities; provide immediate guidance to client personnel; and troubleshoot and pilot solutions. We improved line through from ~225 cases/shift to ~375 cases/shift, reduced fill weight by 3-7% to minimize overfill, reduce floor scrap by 50%; and eliminated expired rework scrap. To ensure sustainability and further improvements, we: trained client personnel, put in place process changes, tools, KPIs and reporting system; and identified/planned next set of improvement opportunities. Gotham also launched logistics savings capture by developing direct ship pilot and facilitating conversation between company sales teams and foodservice distributors.
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Establishing Operation End-vision for a Fast-growing, Entrepreneurial Climate Control Product Manufacturer
Conducted a 3-week operations diagnostic to establish an end-vision for optimizing the clients’s manufacturing, supply chain, and engineering operations. Gotham developed a solid fact base of the client’s operations, including demand patterns, inventory, labor efficiency, product complexity, and cost structure. Working with management, Gotham created an end-vision to transform operations and generate both real bottom line benefits – 600bp EBITDA improvement, 20-30% reduction in inventory, and 30% reduction in the plant footprint – and capability enhancements (faster speed to market, improved quality, etc.) that will allow the client to capture market opportunities and drive future growth. The company’s board wholeheartedly backed this end-vision and asked Gotham to help accelerate capture of these opportunities.
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Focusing and Accelerating Labor and Freight Cost Reductions at Branded Consumer Goods Company
Identified and help capture immediate cost savings opportunities in a recently acquired portfolio company that fell short on EBITDA target and violated bank covenants. Effort included 3-4 week development of $1-2MM cost reduction plan and 6-week assistance in capturing $900K labor and outbound freight opportunities, accounting for 15% increase in EBITDA.
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Rolling Out Waste Reductions and Productivity Best Practices at Specialty Printing Company
Identified $6-$12MM in purchasing, scheduling, and manufacturing savings opportunities (over 15% of total cost). Implemented client improvement team processes, developed standard operating procedures (SOPs), and implemented shop floor tracking and measurement systems.
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