Improve Profits, Reduce Time
The Heinz Quality Chef Foods division is a unit within Heinz that prepares and makes frozen soup for the institutional sector. They were challenged with maximizing their profits while dealing with an economy which was demanding lower prices and ever increasing material costs. Being Heinz they had to maintain their quality and service while reducing costs. Their plant was going through a number of capital improvements and wanted the assistance from Carpedia to help them achieve their profitability goals in a much more reduced time frame.
The project focus was in 2 areas: manufacturing and materials. The project along with their own initiatives achieved the results that were expected and they are in a position to gain even more payback from the implemented results. Items that occurred that help achieved the results are as follows:
Improved labor productivity
Achieved 25% increase in productivity through several initiatives:
- Continued running lines through breaks and lunches adding extra capacity.
- Established new cleaning SOPs resulting in 521 extra hours of capacity a year.
- Implemented a resource plan that allowed management to crew the plant to specific SKU’s whereby reducing unnecessary labor hours.
- Modified production schedules to help eliminate changeovers and assist in longer run times.
- Identified and eliminated non value added activities whereby reducing labor costs.
- Implemented Inventory management system to assist inventory control in ordering materials so production would not be shorted Daily visibility of material usages so that any variances could be resolved immediately.
- Modified equipment to lessen the amount of product that was lost due to spillage.
- Ensured all ingredient totes were emptied capturing 41,000 pounds of material that would otherwise have been scrapped.
- Reduced material tracking paperwork by 85%.
- Installed a tempering tool that reduced the amount of ingredients that were micro-waved whereby increasing their yields by 10%.
- Ensured materials were prepared and ready to go to the line whereby reducing wait time for materials.
The Client Experience:
“Like many companies we have had to undertake several initiatives to lower expenses, increase productivity and maintain our competitive edge in the food industry. Carpedia contributed a great deal to help with these initiatives and allowed us to achieve our goals in a time frame that we would not have been able to had we done it on our own. The process improvements that you helped us implement along with the management operating system coupled without own internal improvements have paved the way for us to ensure a successful future.”
Director, Operations, H.J. Heinz