SMALL IMPROVEMENT UNLOCKED HUGE ADDITIONAL REVENUE
£87k Costs Saved
12 Month Project
Effort was focused on reducing the overfill of product packs. The savings in materials were dwarfed by the extra revenue generated from sales because product was no longer being given away for free.
The original goal was to cut the amount of product being wasted through packs being overfilled near to the top of the legal limits for consumer and industrial pack sizes.
When the results were tracked it was shown that overfill had decreased but the material costs had not reduced by as much as expected. Further investigation revealed that sales had increased at an almost identical rate as the overfill declined. This cut the cost of raw material but used more packaging. The yield of the finished product increased per batch.
The additional sales generated due to giving away less ‘free’ product was worth a staggering £750k pa.
The initial focus was on better operator education and improved machine setups. This led to significant results quite quickly. As the limitations of the equipment were exposed, a targeted minor investment programme was launched to improve the capabilities of the key filling lines. This made sure that the improvements in performance were sustainable.
This case study highlights the huge impact that small changes can have when they are implemented in a consistent, sustainable way.