The company had launched an initiative to improve productivity in every plant without spending any capital. The Midwest Region devised a fast-paced approach that relied on small teams of improvement specialists with strong backgrounds in manufacturing operations. A team would spend one week in each plant identifying priority areas of opportunity then conducting whatever studies were necessary to document the potential savings and recommend specific actions to reduce costs. The teams would conduct follow-up visits to review implementation progress and suggest additional cost reduction activities.

The client partnered with four IET engineers over a six-month period to evaluate 20 plants. IET’s engineers targeted processing equipment run rules, machine start-ups, crewing and equipment operating parameters in their search for labor, material and equipment waste. Using time study and delay study tools in conjunction with interviews and direct observation, the teams spotlighted performance issues in these areas: adherence to plant maintenance schedules; sanitation and start-up procedures; on-time starts, lunches and breaks; schedule optimization; standard work methods; first hour OEE; material scrap; and operator training. By the end of the week, recommended actions that required no capital expenditures and the associated cost savings were documented and reviewed with the plant management staff. Each plant received detailed recommendations on what they could do to reduce costs without capital expenditures. IET engineers typically found annual savings of $1.0 to $1.5 million per plant with a total potential savings for the region of $27 million.