Cosmetic Packaging Firm Optimizes OEE, Materials, and Labor for Profitability

Client Context

• Leading cosmetics plastic packaging manufacturer.
• +350 employees, 4 manufacturing plants, present in 45 countries

Key Challenges

• Increase line efficiency of 4 packaging lines at a Dutch location, to meet the production plan
• Ensure team leads act as a leader of people and help them with doing the things they need to do to get the expected results
• Improve communication across all departments that touch the production process

Approach & Key Success Factors

4-week assessment:

• Assessed the company’s current situation on three main dimensions (Organization, Processes and IT/Digital tools, Financial & Operational Benchmarking – including product marginality)

• Evaluated optimization levers with potential target savings

• Identified quick wins and defined the implementation plan

8-week quick-wins implementation:

• Restored and reduced scrap in II° processes
• Automated painting loading
• Improved OEE
• Optimized manning
• Implemented shopfloor visual management

Results

21%

Possible combined EBITDA increase

4.4% 

OEE improvement across 5 manufacturing lines by deploying a SMED taskforce and reducing changeover losses

3.5%

Improvement in material efficiency from reduced material waste and optimized inventory management

€200K

in assessed potential cost savings from internalizing currently subcontracted activities