MAGOS Consulting

Case study · Food manufacturing

We guaranteed nearly $4M of savings before we knew whether we would find it.

A food manufacturer, coextrusion and impingement lines.

Results at a glance

$7M

Annualized savings run rate against nearly $4M guaranteed, close to double the guarantee.

170 to 142 hours

Sanitation labor per cleaning cycle, a 17% reduction. The labor spent taking a line from the end of one run to the start of the next.

+27%

Output in the first three hours of production, about 10K to 13K lbs.

A cutaway brass extrusion head on dark stone, its left half crusted rust orange and its right half polished, with a clean teal ribbon running through the centre into a fine teal mist.

The situation

Coextrusion and impingement lines, and a cleaning cycle between runs. One full cleaning cycle absorbed 170 labor hours. The first three hours after a start up put out about 10K pounds, and defective packaging sat at 1,100 pounds in the week it was measured.

The commercial structure

We measured the work the plant was already doing rather than the work it intended to do. The commercial structure matched the exposure: a guarantee of nearly $4M in savings, with our fees tied to what the client realized.

What we did

Daily coordinator downtime reviews with root cause thresholds became the standing look at every stoppage, the same day it happened. Around that went written custom playbooks, Tier 1 and Tier 2 huddles run against the numbers, Leader Standard Work, a sustainability audit, and coaching at every level of management.

The result

Every figure, and how it was confirmed.

$7M

Annualized savings run rate against nearly $4M guaranteed, close to double the guarantee.

170 to 142 hours

Sanitation labor per cleaning cycle, a 17% reduction. The labor spent taking a line from the end of one run to the start of the next.

+27%

Output in the first three hours of production, about 10K to 13K lbs.

1,100 to 326 lbs

Defective packaging, down about 60% in one week.

5 hours

Best demonstrated sanitation, link to link, meaning one complete cleaning cycle from the end of a run to the start of the next.

As reported by the principal

How we report value

What they kept

Installed with the plant’s own people: the playbooks, the Tier 1 and Tier 2 huddles, the Leader Standard Work, and the daily coordinator downtime review, with the managers and coordinators coached to run them.

Next step

If this company sounds like yours, ask us what a discovery would look at in your numbers.

You do not have to be ready to buy anything. One of the three of us will answer the question ourselves.

Ask the principals a question