1. Consumer
BusinessChallenge
AmajorNordicsnackandconfectionary
producer,whichstartedoperationsin
thelate1800’s,istheleaderinthebiscuit
marketinSweden.Thecompanyenjoys
a50%marketshareandsuppliesaround
50products,includingmanywell-known
brands.
Amorechallengingmarketplacewith
increasedcompetitionhadputpressureon
thecompanytoincreaseproductivityand
cutcostsinordertosustaintheircurrent
marketshare.
Asixweekanalysiswasconductedandthe
findingsshowedacomplexgroupstructure
ateachproductionlineatthefactorywith
nodefinedoperatorbreakpatterns.This,
alongwithaninefficientmanningstructure
andlackofStandardOperatingProcedures
(SOPs),togetherwithunclearrolesand
responsibilitieshadledtoanover-sized
productionorganization.
Theutilizationofinternallogisticsoperators
waslowandthedepartmentwasbeingheld
backduetodisagreementsonrolesand
responsibilities.
Themaintenancedepartmentwasworking
inaconstant“fire-fighting”mode,which
preventedasystematicefforttofindand
eliminatetherootcauseofproblems.
Inefficienciesinmaintenanceplanningand
reportingmeantthatnecessarydatawas
notcollected,preventingtheclientfrom
creatingafocusedandreliablepreventative
maintenanceplan.Theexisting
maintenanceworkorderprocesswasnot
onlyincompletebutalsonotbeingfollowed
properly.
CaseStudy
Achievingoperatingcostreductions
ataleadingbiscuitproducer
Overview
CustomerChallenge
Increaseproductivityinordertobe
competitiveinanincreasingly
challengingmarketplace
Location
Sweden
Sector
Consumer
Function
Maintenance,Production,
InternalLogistics
ServiceLines
ManagementConsulting,
OrganizationalEffectiveness
TheSolution
■■ Reduceoperatingcosts
(FTEs)inproduction.
■■ Reduceoperatingcosts(FTEs)
ininternallogistics.
■■ Improvetheoutdatedmaintenancework
orderprocessasafirststeptoreduce
firefightingandenablemoretimetobe
spentonpreventativemaintenance.
HitachiConsultingdesignedtheproject
coveringfiveworkstreams-threein
production,oneininternallogisticsandone
inmaintenance.Theprojectwasdelivered
duringthecourseof14weeks,closely
collaboratingwiththeclienttaskforce.
Inordertoincreaseflexibilityandease
trainingofoperators,SOPswerecreated
andinstalledateachcriticalworkstationin
production.Thisallowedamore
standardisedwayofworkingandenabled
productionwithaleanerworkforce.
Thecapabilitiesateachworkstationaswell
astheoperator’sskillshadtobemappedin
ordertocreateatrainingplan.Thiswas
crucialinenablingthemanningreduction
wherefeweroperatorsneededtobeableto
rotatetomanmorestations.
Rolesandresponsibilitieswereclarifiedfor
thetestrunprocedure,whichinvolvedthe
complexinterfacebetweentheproduction,
productdevelopmentandplanning
departments.Personnelfromallconcerned
departmentswereinvolvedinmappingout
andclarifyingthedifferentrolesand
responsibilitiesforthemainand
sub-processes.
Productivity
andManning
Improvements

2. Productionand
InternalLogistics
Performance
Improvements
injust14weeks
Euro1.3min
annualsavings
expected
Creatinganewbreakpatternschedulefor
allthreeshiftsenabledamoreleanmanning
structureandallowedsupervisorstogain
control.
InternallogisticsSOPswerecreatedinclose
collaborationwithoperatorsthusgaininga
greaterunderstandingofthedaytoday
activities.Thiseliminatedthe
disagreementsbetweenoperatorsand
clarifiedthepossibilityofanFTEreduction.
Anupdatedmaintenanceworkorder
processwascreatedincludingadditional
criticalsubprocessessuchasagatekeeping,
escalationandhandoverprocesses.Anew
reportingroutinewassetup,requiring
reportingonadailybasistocollectthe
necessarydatainordercontinuouslyget
reliabledataforthepreventative
maintenanceplan.
Results
■■ Theprojectenabledatotal
manningreductionof26FTEs,both
productionoperatorsandoperators
ininternallogistics,andanticipated
annualsavingsof1.3mEuro.
■■ Thenewmanningstructurewithan
installedbreakpatternscheduleanda
newmanningpatternwithareduced
workforcewassuccessfullytestedatthe
factory.Itwasmadepossiblethanksto
thenewSOPs,clarificationofrolesand
responsibilitiesandtrainingofoperators.
■■ Theupdatedmaintenancework
orderprocessenabledreduction
offirefightingandincreased
collaborationbetweenproduction
andmaintenanceandhaslaidthe
foundationforgettingrealanduseful
datatomakethetransitiontoamore
factbasedpreventativemaintenance.
AboutHitachiConsulting
HitachiConsultingistheglobal
managementconsultingandITservices
businessofHitachiLtd.,aglobaltechnology
leaderandacatalystofsustainablesocietal
change. Inthatsamespirit—andbuilding
onitstechnologyheritage—Hitachi
Consultingisacatalystofpositivebusiness
change,propellingcompaniesaheadby
enablingsuperioroperationalperformance.
Workingwithintheirexistingprocessesand
focusingontargetedfunctionalchallenges,
wehelpourclientsrespondtodynamic
globalchangewithinsightandagility. Our
uniqueapproachdeliversmeasurable,
sustainablebusinessresultsandabetter
consultingexperience.
Formoreinformationpleasevisit
www.hitachiconsulting.com
Email:info@hitachiconsulting.com
HitachiConsultingistheglobalmanagementconsultingandITservicesbusinessofHitachiLtd.,aglobaltechnologyleaderandacatalystofsustainablesocietalchange. Inthatsamespirit-andbuildingonitstechnology
heritage-HitachiConsultingisacatalystofpositivebusinesschange,propellingcompaniesaheadbyenablingsuperioroperationalperformance. Workingwithintheirexistingprocessesandfocusingontargetedfunctional
challenges,wehelpourclientsrespondtodynamicglobalchangewithinsightandagility. Ouruniqueapproachdeliversmeasurable,sustainablebusinessresultsandabetterconsultingexperience.
www.hitachiconsulting.com