Lean Assessment of CPG Manufacturing Improvement Opportunities (Dial Henkel)

CPG company producing air fresheners and detergent wanted to identify cost savings and
safety improvement opportunities in manufacturing

• Used Value Stream Mapping to understand the high level process flow and more detailed processes in manufacturing through distribution
• Worked with Dial-Henkel team to gather: Labor time, OEE, Yields, Changeover time, Rework, Maintenance costs, and Inventory at every operation
• Performed 68 time studies at each operation to understand detailed non-value-added steps and potential safety problems
• Took all operational data to a per-case cost normalize all non-value-added costs
• Used Pareto analysis to identify the most vital areas to improve profitability

Results

• Created 19 action items that could be implemented immediately to reduce costs
• Identified 8 safety problems that were immediately fixed
• Identified 5 environmental improvements
• Identified 130 “wastes” totaling $7,334,560 with one improvement worth a cost reduction of $1,183,250
• Chartered 7 Lean Projects implemented by Dial-Henkel’s internal team