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Improving OEE To Create Production Capacity And Reduce Direct Labor Spend​

Consumer Packaged Goods

Case Study

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    The client, a multinational consumer packaged goods company, was struggling with underperformance in Overall Equipment Efficiency (OEE) on one of their core product lines. The challenge wasn’t solely about the equipment itself, but stemmed from issues in utilization, coordination, and overall management.​

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    Carpedia addressed these challenges by optimizing changeover sequencing and production planning to reduce overtime and increase scheduling flexibility. In parallel, we strengthened frontline leadership capabilities through Carpedia College, equipping managers and supervisors with enhanced problem-solving skills and reducing reactive, fire-fighting behaviors on the production floor.​

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    In addition to the primary area of focus, Carpedia uncovered additional opportunities to improve line crewing efficiencies beyond the defined scope of the project, significantly increasing the client’s realized benefits. ​

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    Improvement in Direct Labor Efficiency

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    Reduction in Changeover Downtime

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    Reduction in Annual Planned Downtime

    Carpedia partnered with the client to:​

    • Develop changeover planning schedules that outlined activity sequencing, standard activity times, and required crewing to compress changeovers​
    • Remove low utilization positions on the manufacturing lines to reduce direct labor costs​
    • Develop a playbook detailing strategies to consistently run the packaging lines through breaks and lunch periods​
    • Implement a labor scheduling tool, creating visibility into daily direct labor crewing requirements based on routing
      standards and reduce “stranded labor“​
    • Optimize existing PMs and load-level the schedule, improving schedule attainment and reducing mechanical downtime​
    • Develop a maintenance technician workload scheduling system to improve utilization and efficiency

    The Results

    The installation of improved labor scheduling, downtime reduction improvements, and dynamic management
    coaching resulted in:
    Specific results include:
    • 800 basis points improvement to OEE ​
    • 18% improvement in direct labor efficiency​
    • 21% reduction in annual planned downtime​
    • 34% reduction in annual changeover downtime ​
    • 11% reduction in direct headcount 
    The engagement provided the client with the capacity to insource volume from third party manufacturers and aroadmap to scale operations in the future. The client has engaged Carpedia to roll-out the changes implemented atadditional facilities. 

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