The Client
A food company with a milling business that sought to modernize its operations to improve profitability.
The Challenge
The company lacked a unified and precise system for monitoring its products, production, sales, and orders. This lack of real-time visibility made it impossible to make informed financial decisions, which hindered cost tracking, profitability analysis, and strategic planning. If you want to learn more about these problems, read our article on ‘5 Common Bottlenecks in Manufacturing and How to Spot Them‘.
The UpKaizen Solution
UpKaizen designed a custom Production Management System using spreadsheets. This solution, which was created to be precise and scalable, included:
- Production Integration: A new system to track and monitor all products, from milling to delivery.
- Inventory Management: The creation of a detailed stock table linking sales, production, and deliveries for more efficient inventory management.
- Financial Visibility: A dashboard with an “Income Statement chart” that provided management with a holistic view of costs, revenue, and profitability, eliminating assumptions and enabling data-driven decision-making.
The Results
The implementation of the system yielded multiple benefits for the client:
- Increased Profitability: The new cost visibility allowed the company to identify savings opportunities and make smarter pricing decisions.
- Improved Efficiency: The new tracking system, although manual, reduced errors and simplified processes, which resulted in a more efficient operation.
- Better Budgeting and Planning: The “Income Statement chart” provided a solid foundation for financial planning, which allowed the company to set more realistic goals and take control of its future.
Note: While a spreadsheet system was once the ideal solution, today a Manufacturing Execution System (MES) solution would be the next logical step for real-time visibility and increased efficiency.
Do you identify with this case? If your company suffers from a lack of data visibility or inefficient inventory management, our Production Efficiency Micro-Diagnostic can help you find the solutions.
