Transforming Productivity and Efficiency in Grain Milling Operations

Client Context

The company, a contract manufacturer in grain milling and dry bagging, faced several challenges including low productivity, high overtime costs, unfinished automation projects, and limited throughput capacity. These issues hampered their efficiency and operational effectiveness.

Key Challenges

A contract manufacturer specializing in grain milling and dry bagging operations faced significant challenges including:

• Declining productivity
• High overtime rates
• Incomplete automation projects
• Throughput capacity limitations

Approach & Key Success Factors

Operational Streamlining:

1. Kaizen Events: Conducted blitz floor kaizens to simplify operations, reduce staffing, and improve material flow within the continuously running operation.
2. Production Planning Overhaul: Reimagined the production planning process to link inbound raw materials to production capacity. This change shortened the order-to-produce-to-ship cycle from over 11 days to just 2 days.
3. Warehouse Optimization:
   • Implemented a new slotting strategy.
   • Expanded staging space.
   • Improved inventory locations and cycle counting systems.
   • Reduced truck load time from 2 hours to 19 minutes.

Training and Development:

1. LEAN Training: Provided basic and advanced LEAN training to supervisors, focusing on waste identification and collaborative strategies to address each loss.

Automation Project Recovery:

1. Rescuing Projects:
   • Revived three stalled automation projects.
   • Engaged Original Equipment Manufacturers (OEMs) and key stakeholders to rapidly address design gaps and modify tooling.
   • Clarified floor layouts and material flows.
   • Accelerated remote Factory Acceptance Tests (FAT).
   • Developed Standard Operating Procedures (SOPs).
   • Ensured all projects returned to their original timelines.

Results

34%

Improvement in plant packing throughput per 10-hour day.

>40%

Reduction in costs per pound of grain processed and shipped

>30

Reduction in headcount by full-time equivalents (FTEs), resulting in $1,300,000 in cost savings.

35%

Increase in throughput capacity per 10-hour day by going live as scheduled increased

70%

Improvement in net throughput capacity