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Project Management Case
                          Study for David Hewitt

Customer Profile
   Greencore is one of Europe’s leading food businesses, supplying major
   retailers and foodservice providers with a wide range of ingredients and
   prepared food products from manufacturing facilities across the UK and
   Europe. With annual revenue of $2.2B and 8,000 employees, Greencore
   is an acknowledged leader in the provision of convenient, premium
   quality product.
Business Situation
   To support a 3-year group-wide cost reduction imitative Greencore had
   historic operations information for senior managers on a weekly and
   monthly basis. However, they lacked intelligence for people on the shop
   floor to drive real-time action and take ownership of their own
   performance. Specific areas of improvement focus included re-work,
   changeovers and downtime.

Solution
    Greencore chose CDC Factory, a manufacturing operations
    management solution from CDC Software.
Benefits
           5% reduction in direct labor costs
           Restructured production schedule, minimizing the number of
           required clean-downs
           Elimination of various product re-works
           Reduced changeover durations
           Production line speeds adjusted to optimum level
           Identified and fixed specific causes of downtime

               Background
               Greencore Group plc is one of Europe’s leading food
               businesses, supplying major retailers and foodservice
               providers with a wide range of ingredients and prepared
               food products from manufacturing facilities across the UK
               and Europe. With annual revenue of $2.2B and 8,000
               employees, Greencore is an acknowledged leader in the
               provision of convenient, premium quality products.
Business Challenges
The company had recently kicked off a three-year cost
reduction initiative which included improving factory
efficiencies, product innovation, customer on-time delivery
and standardizing best working practices. Through a
series of strategy review meetings CDC Factory was
introduced as an out-of-the-box technology enabler to
support all these key initiatives. When Greencore’s
Operations Director David Gallagher first saw a
presentation of CDC Factory he understood the benefits
immediately. The opportunity to integrate real-time
production operations with quality assurance processes
and improvement campaigns driven by the factory floor
could not be overlooked
“We wanted to try and reverse the usual relationship, so
that pressure to make changes is being driven upwards
throughout the organization,” said Gallagher. “What we
were looking for was something that was easy to use but
would also supply the kind of information that a shop floor
can use quickly. We had a very strong opinion that it had
to have a holistic approach – it had to connect the shop
floor to what the management system was doing.”
Solution
Greencore’s $100m annual revenue cake and desserts
manufacturing facility was chosen as the first of Greencore’s
factories to install the groundbreaking CDC Factory
manufacturing operations management suite. The plant was
opened in 2000 and was designed as a one-stop source for
its customers, combining high volume production with
premium hand-decorated product.
Greencore had already developed an operational suite of
performance information that provided the senior
management team with what it required to make week-to-
week and month-to-month decisions.
“What we lacked,” says Gallagher, “was information for
people on the shop floor that can affect the next five
minutes. I’d have to say on reflection that CDC Factory was
the only one that was anywhere near holistic – the
alternative systems we evaluated were just too disjointed.
We absolutely felt that there was an immediate cultural fit
with what we were trying to do.”
And from the outset, it was clear that the product would live
up to some pretty high expectations - as David Gallagher
says; “It does exactly what it says on the box!” The first
Results

    Re-work – Greencore’s premium-quality hand-decorated
    cakes must leave the factory in pristine condition and
    occasionally an individual product will not meet the required
    standard and has to be re-decorated, or re-worked. This was
    one area in which the company wished to see significant
    reductions, and analysis of re-work in CDC Factory revealed
    a number of opportunities for improvement. For example, the
    data showed that many un-decorated cakes were damaged
    from placement on racks, where they were stored temporarily
    because the hand-decorators could not keep pace with the
    volume of product coming through. These products were only
    subsequently restored to the process during the next gap in
    throughput. Once this cause was established, not only was
    the production line speed adjusted to the optimum level, but
    bottlenecks in raw materials delivery at the head of the line
    were addressed to ensure no more “gaps.”

Another issue identified through analysis of data provided by CDC
Factory was significant variation in the consistency of the icing
applied to certain cakes via a sheeting machine. By addressing
Changeovers – With so many different SKUs produced on site, the length
of time taken by operations personnel to clean down and set up a
production line for a new run varied considerably. In order to identify
opportunities for improvement in this area, analysis of changeover data
provided through CDC Factory was carried out with the full involvement of
the production planning and scheduling team.

This analysis led to a restructuring of the production schedule, in which all
similar colored SKUs are produced in the same time period, thus
minimizing the number of required clean-downs. Additionally, CDC Factory
identified opportunities to save clean-down time through ongoing self-
cleaning of the conveyors. A small modification to the production line
provided this and further reduced changeover durations by cutting the time
required for a full clean-down.
Downtime – One of the zones in Greencore’s dessert manufacturing plant
produces 4 million cakes in time for the Christmas season, so being able
to identify the principal causes of manufacturing downtime is crucial. In
one production area, for instance, a recurring downtime • • cause entered
in CDC Factory was “Waiting For Mix.” To solve this problem, an additional
mixing vessel was installed, together with a cross-feed pipe to the
depositor. The result was that mixture could be prepared continuously and
fed in to the production line as required, eliminating costly “Waiting For
Mix” downtime.

        Culture Change and Ownership
        The project has already engendered a number of important cultural
        changes within the business. “We were very clear with the shop floor
        workforce that the intention was to allow them to come up with new
        ways of working and bringing their ideas forward. We wanted them to
        spend less time just coping and more time actually improving - they
        have embraced the empowerment that CDC Factory gives them,” says
        Gallagher.
        He has also noticed a change in his own role. “I am now much more of
        a ratifier of the improvements that take place in the plant than I am an
        instigator. Previously I would be a prime mover – now it’s much more
        ’Tell me what the options are, yes I think you’ve chosen the right one,
        go ahead and do it’. And that’s exactly what we set out to achieve.”
Equally importantly, CDC Factory has delivered all the projected
financial benefits. “In a market sector where costs are rising
unavoidably, CDC Factory has helped us minimize those effects for
our customers through a 5% reduction in direct labor costs.”

The next phase of the project, which will see the implementation of
CDC Factory at two further Greencore sites is already being planned.
David Gallagher is thoroughly optimistic looking forward. “From what
I’ve seen so far, I’d say that in the future I’m going to be quoting this
project as the best one I did as Operations Director of this company!
It’s certainly changing the working day for people here and I’d
wholeheartedly endorse it.”

To understand how we can accelerate your MES and continuous
improvement initiatives with CDC Factory, contact us to learn more
about our unique Performance Review Service—a 3-day workshop
that pinpoints specific areas of improvement, cost reductions and key
performance metrics relevant to your factory.
“ It’s the people who work with a system that make things
happen, and CDC Factory is the most useable of any system
I’ve ever seen. ”
                   David Gallagher
                   Operations Director

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Greencore

  • 1. Project Management Case Study for David Hewitt Customer Profile Greencore is one of Europe’s leading food businesses, supplying major retailers and foodservice providers with a wide range of ingredients and prepared food products from manufacturing facilities across the UK and Europe. With annual revenue of $2.2B and 8,000 employees, Greencore is an acknowledged leader in the provision of convenient, premium quality product. Business Situation To support a 3-year group-wide cost reduction imitative Greencore had historic operations information for senior managers on a weekly and monthly basis. However, they lacked intelligence for people on the shop floor to drive real-time action and take ownership of their own performance. Specific areas of improvement focus included re-work, changeovers and downtime. Solution Greencore chose CDC Factory, a manufacturing operations management solution from CDC Software.
  • 2. Benefits 5% reduction in direct labor costs Restructured production schedule, minimizing the number of required clean-downs Elimination of various product re-works Reduced changeover durations Production line speeds adjusted to optimum level Identified and fixed specific causes of downtime Background Greencore Group plc is one of Europe’s leading food businesses, supplying major retailers and foodservice providers with a wide range of ingredients and prepared food products from manufacturing facilities across the UK and Europe. With annual revenue of $2.2B and 8,000 employees, Greencore is an acknowledged leader in the provision of convenient, premium quality products.
  • 3. Business Challenges The company had recently kicked off a three-year cost reduction initiative which included improving factory efficiencies, product innovation, customer on-time delivery and standardizing best working practices. Through a series of strategy review meetings CDC Factory was introduced as an out-of-the-box technology enabler to support all these key initiatives. When Greencore’s Operations Director David Gallagher first saw a presentation of CDC Factory he understood the benefits immediately. The opportunity to integrate real-time production operations with quality assurance processes and improvement campaigns driven by the factory floor could not be overlooked “We wanted to try and reverse the usual relationship, so that pressure to make changes is being driven upwards throughout the organization,” said Gallagher. “What we were looking for was something that was easy to use but would also supply the kind of information that a shop floor can use quickly. We had a very strong opinion that it had to have a holistic approach – it had to connect the shop floor to what the management system was doing.”
  • 4. Solution Greencore’s $100m annual revenue cake and desserts manufacturing facility was chosen as the first of Greencore’s factories to install the groundbreaking CDC Factory manufacturing operations management suite. The plant was opened in 2000 and was designed as a one-stop source for its customers, combining high volume production with premium hand-decorated product. Greencore had already developed an operational suite of performance information that provided the senior management team with what it required to make week-to- week and month-to-month decisions. “What we lacked,” says Gallagher, “was information for people on the shop floor that can affect the next five minutes. I’d have to say on reflection that CDC Factory was the only one that was anywhere near holistic – the alternative systems we evaluated were just too disjointed. We absolutely felt that there was an immediate cultural fit with what we were trying to do.” And from the outset, it was clear that the product would live up to some pretty high expectations - as David Gallagher says; “It does exactly what it says on the box!” The first
  • 5. Results Re-work – Greencore’s premium-quality hand-decorated cakes must leave the factory in pristine condition and occasionally an individual product will not meet the required standard and has to be re-decorated, or re-worked. This was one area in which the company wished to see significant reductions, and analysis of re-work in CDC Factory revealed a number of opportunities for improvement. For example, the data showed that many un-decorated cakes were damaged from placement on racks, where they were stored temporarily because the hand-decorators could not keep pace with the volume of product coming through. These products were only subsequently restored to the process during the next gap in throughput. Once this cause was established, not only was the production line speed adjusted to the optimum level, but bottlenecks in raw materials delivery at the head of the line were addressed to ensure no more “gaps.” Another issue identified through analysis of data provided by CDC Factory was significant variation in the consistency of the icing applied to certain cakes via a sheeting machine. By addressing
  • 6. Changeovers – With so many different SKUs produced on site, the length of time taken by operations personnel to clean down and set up a production line for a new run varied considerably. In order to identify opportunities for improvement in this area, analysis of changeover data provided through CDC Factory was carried out with the full involvement of the production planning and scheduling team. This analysis led to a restructuring of the production schedule, in which all similar colored SKUs are produced in the same time period, thus minimizing the number of required clean-downs. Additionally, CDC Factory identified opportunities to save clean-down time through ongoing self- cleaning of the conveyors. A small modification to the production line provided this and further reduced changeover durations by cutting the time required for a full clean-down.
  • 7. Downtime – One of the zones in Greencore’s dessert manufacturing plant produces 4 million cakes in time for the Christmas season, so being able to identify the principal causes of manufacturing downtime is crucial. In one production area, for instance, a recurring downtime • • cause entered in CDC Factory was “Waiting For Mix.” To solve this problem, an additional mixing vessel was installed, together with a cross-feed pipe to the depositor. The result was that mixture could be prepared continuously and fed in to the production line as required, eliminating costly “Waiting For Mix” downtime. Culture Change and Ownership The project has already engendered a number of important cultural changes within the business. “We were very clear with the shop floor workforce that the intention was to allow them to come up with new ways of working and bringing their ideas forward. We wanted them to spend less time just coping and more time actually improving - they have embraced the empowerment that CDC Factory gives them,” says Gallagher. He has also noticed a change in his own role. “I am now much more of a ratifier of the improvements that take place in the plant than I am an instigator. Previously I would be a prime mover – now it’s much more ’Tell me what the options are, yes I think you’ve chosen the right one, go ahead and do it’. And that’s exactly what we set out to achieve.”
  • 8. Equally importantly, CDC Factory has delivered all the projected financial benefits. “In a market sector where costs are rising unavoidably, CDC Factory has helped us minimize those effects for our customers through a 5% reduction in direct labor costs.” The next phase of the project, which will see the implementation of CDC Factory at two further Greencore sites is already being planned. David Gallagher is thoroughly optimistic looking forward. “From what I’ve seen so far, I’d say that in the future I’m going to be quoting this project as the best one I did as Operations Director of this company! It’s certainly changing the working day for people here and I’d wholeheartedly endorse it.” To understand how we can accelerate your MES and continuous improvement initiatives with CDC Factory, contact us to learn more about our unique Performance Review Service—a 3-day workshop that pinpoints specific areas of improvement, cost reductions and key performance metrics relevant to your factory. “ It’s the people who work with a system that make things happen, and CDC Factory is the most useable of any system I’ve ever seen. ” David Gallagher Operations Director