Success Stories / Raw Material Scrap Reduced Through Improved Process and Data Automation

Raw Material Scrap Reduced Through Improved Process and Data Automation

$65mn Coatings Manufacturer

2024

BACKGROUND

The CEO of this 7-line coatings manufacturer was unsatisfied with the adequacy of its raw material scrap data and sought greater visibility into raw material losses.

Saphineia was engaged to:

Evaluate raw and packaging material losses (Shrink), including the adequacy of the current data collection and analysis processes
Create an estimate of Shrink
Identify opportunities to improve data collection and loss levels

SERVICES

Operational Excellence

ASSESSMENT

As part of our assessment, we:

Led a project to map all potential raw material and finished product loss points across the facility
Created a new measurement process and completed a comprehensive mass flow analysis to validate it
Standardized procedures for capturing weights and the system for calculating losses
Trained front-line leaders, machine operators, and hourly workforce on documentation
Reviewed weights and measures collection systems (calibration and taring)
Performed statistical analysis to understand opportunities
Evaluated automation opportunities for collections of weights and the interactions of the current reporting system with the company’s ERP system
Proposed an out-of-the-box idea to dramatically improve output and reduce losses

RESULTS

As a result, the company benefitted as follows:

Finished goods product weights declined by 2%
Savings provided < 2 month payback on Saphineia’s fees

CLIENT BENEFITS

Brought process and focus that dramatically improved operational visibility to a key cost driver
Discovered key calibration, taring, and other data collection inconsistencies that contributed to a loss of visibility of true weights
Developed action plan for future loss reduction, data automation & ERP reporting