Production Performance Management System
Network-wide Operating System to Turn Around Performance at Foodservice/Co-pack Juice Company
Turned around plant performance by implementing basic plant operating system (downtime, waste, and scheduling). $600K in run rate cost savings captured by the end of the 6-week engagement, with tools and processes in place to capture the rest. Building on the initial success, rolled out the network-wide standard operating procedures to the other 2 plants during an 8-week Phase II effort with additional savings of $2-2.5MM expected. Company generating record EBITDA (60+% improvement in EBITDA) and the PE firm decided to market the company for an exit.
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Implementing Measurement/Tracking/Reporting To Build Cost Discipline And Capture Material And Labor Cost Savings at Specialty Baked Goods Company
Identified $1.1-1.6MM in cost reduction opportunities in materials, labor, and freight. Launched a fact-based cost-reduction program including ingredient measurement and feedback system, a system for fixed labor standards based on rated line speeds, goal boards to manage productivity targets/performance, and a performance measurement and reporting system.
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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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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 Cost-focused Operational Processes to Enable Rapid Cost Savings Capture at Premium Personal Care Products Company
Identified $9-12.5MM in cost reduction opportunities, which required addressing CosmeticCo's critical gaps in operational basics, which had become exacerbated by fast growth, and its limited understanding of/focus on actual costs. Within 4 months, over $7MM in cost reduction opportunites confirmed or detailed, with $2.5MM already captured on run-rate basis. CosmeticCo continues to implement detailed-out changes to complete capture of near-term savings and then pursue longer-term opportunities.
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Capturing Manufacturing and Logistics Cost Savings Opportunities While Maintaining High Customer Service Levels at Premium Baked Goods Manufacturer
Lowered nationwide logistics/transportation costs via reductions in emergency shipments and outsourcing/consolidating of the carrier fleet and warehouses to a single, third-party logistics provider (3PL). Set lowest-cost freight allocation system targets, defined proposal criteria, and created RFQ. Actual savings exceeded projections by 15% in the first year ($6.9MM EBITDA impact), with maintenance of 99+% fill rate.
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