"Reese Partners helped Huhtamaki realize significant cost savings of over $2 million a year. The expertise provided by Reese Partners was superior to what we could have done internally, with respect to both quality and time. They brought an objective view that couldn't be replicated internally, worked within a tight timeline and presented what made the most sense given both current and future business trends."
"Reese Partners assessed our current state of effectiveness and efficiency at our Grant Park Engineering Center, benchmarked us to similar operations and recommended opportunities for improvement. They brought great industry knowledge that supported the benchmark, plus brought a fresh set of unbiased eyes to the assessment."
Business Case
A $3 billion global consumer packaging manufacturer recognized there would be opportunities to reorganize manufacturing operations within its $1 billion Americas division following a period of rapid growth through acquisitions. Setting an aggressive schedule, the company sought help in completing a rigorous analysis of numerous alternatives to rationalize and optimize various operations within its manufacturing network. The company needed hands-on manufacturing experience and sophisticated financial analysis skills applicable to their international operations. They also needed follow through capability, to implement the reorganization plan and drive it to completion.
Reese Partners Role
Reese Partners professionals thoroughly evaluated the current state of operations in the U.S. and Brazil through plant inspections, management interviews and economic analysis to understand the issues and opportunities relevant to potential reorganization scenarios. Alternatives were identified and evaluated for various effects on operating cost, capital investment, service levels and manufacturing flexibility. The optimal scenario was selected and supported with economic justification including a detailed transition budget, ROI analysis and implementation timeline.
Client Success
Reese Partners professionals assisted the company by developing and supporting specific plans to: » Consolidate core design and manufacturing processes into two "super centers' to increase their scale, reduce total costs and concentrate focus; » Leverage low cost labor and high quality skills in the Brazil operating to reduce cost of labor-intensive processes; » Change processes to promote commonality of design and reduce part proliferation, while improving service levels and costs; » Outsource non-value-added activities related to tooling design, testing and manufacturing that were constraining the entire system; and » Eliminate organizational and procedural redundancies.
Results
The rationalization and reorganization strategies: » Reduced total tooling costs by over 20%; » Reduced total direct labor headcount by 23% and indirect by 15%; » Reduced total direct and indirect material spend by 15%; and » Improved lead times from 30-45%
All told, the client saved over $2 million per year.
