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Case Study Page 3

Manufacturing Excellence

Revolutionizing the Manufacturing Sector with Excellence and Innovation

Background

This organization is a leading integrated packaging solutions provider with over 30 years of experience. It operates through various business divisions, each specializing in distinct packaging products and services. The company holds a dominant market share in the cement bag market and also caters to the non-cement packaging segment. The company's offerings include the design, manufacturing, and sale of paper bags, carton boxes, and rigid boxes, often serving industries that require specialized and high-quality packaging. Additionally, it provides offset printing services, enabling customized packaging with vibrant designs.

Project Objectives

The project aims to identify opportunities to reduce production waste and improve operational efficiencies in the Carton Box and Paper Bag Divisions. By analyzing current processes, the project will focus on optimizing workflows, minimizing waste, and improving resource utilization, leading to reduced costs, enhanced productivity, and more sustainable manufacturing practices.

Project Approach

Our project approach involved conducting comprehensive in-depth surveys, along with detailed operational and financial analyses, focusing on areas such as manpower, machinery, and material inefficiencies. We maintained continuous communication and collaboration with key stakeholders throughout the project, ensuring alignment and transparency. This hands-on approach allowed us to gain valuable insights by directly engaging with department heads and frontline teams, understanding their challenges, frustrations, and operational pain points. By securing their buy-in and addressing critical concerns, we were able to implement effective improvements that drive operational efficiency and cost savings.

Business Case to Improve on

Manpower: Improve productivity by 10% and reduce overtime by 40%
Material: Improve paper roll yield by 8%
Machine: Improve machine uptime by 40%

Background

This company is a subsidiary of a prominent Malaysian group, specializing in the servicing, repair, and maintenance of motors, generators, transformers, pumps, and valves. It also offers composite repair integrity services for pipelines and structures, catering to both onshore and offshore needs. With facilities in Kajang, Kemaman, and Bintulu, the company continues to expand its Maintenance, Repair, and Overhaul (MRO) operations, providing comprehensive solutions to meet diverse industrial requirements

Business Challenges

We have conducted a survey and gained a good understanding the company challenges. During the three week survey a number of key issues were identified:

Project Approach

The project was divided into two cross-functional workstreams: Procurement & Operations Management and Sales Management. In Procurement, the focus was on achieving savings by leveraging purchasing power and renegotiating vendor contracts. A Strategic Purchasing Portfolio was applied to optimize supply security and reduce costs. In Operations, a management control system with KPls and scorecards was introduced to improve efficiency and drive desired behaviors. Process improvement efforts, including detailed mapping and stakeholder engagement, resulted in a 56% reduction in cycle time and a 51% reduction in backlog. In Sales, a CRM system and strategic approach were developed to protect and grow the customer base. Sales roles were redefined, and a new sales management system shifted the culture from "order taker" to a more proactive, conversion-driven approach.

Project Results

51%
Improvement in gross margins
56%
Reduction in process cycle time.
7.3%
Procurement cost avoidance.
51%
Reduction in backlog.

Business Challenges

Lack of appropriate mid-level management & supervisory behaviour
Lack of system, KPIs and control elements to effectively manage various aspects of the business
Unclear roles and responsibilities
Complex processes
Communication between departments is not structured and thus not fully effective
Low productivity at the point of execution
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