Industry Case Studies, Food and CPG

Leveraging Quality Management to Achieve Standardized Business Processes

Background:
When a Fortune 500 Food manufacturer completed a survey of the business processes and supporting IT systems employed at the company’s manufacturing plants, some very interesting facts emerged. One of the most important discoveries was that a wide variety of different business processes and an even wider variety of different IT solutions were being used to handle the same basic manufacturing tasks. This lack of business process standardization, and IT standardization, came from the fact that many of the company’s manufacturing facilities were recent acquisitions. The client quickly recognized that having this wide variety of business processes supported by the wider variety of IT solutions was costly, inefficient, and ultimately ineffective.

Situation:
The decision was made to standardize manufacturing business processes and the supporting IT solutions throughout the company and to structure this effort around a renewed focus on food quality and food safety. The client embraced a broad vision of the role that quality plays in food manufacturing. This meant tackling production issues such as specification management, net contents control, quality assurance, quality testing, and product traceability, in addition to handling the essential issues of reducing product failures and minimizing potential product recalls. EnteGreat’s role was to provide expertise and execution through each step in the process: business process redesign, business process change management, design of the IT solution architecture, execution of the IT implementation, program management of the business process and IT solution implementations, and training and support of the manufacturing personnel.

Solution:
A variety of specialized IT tools were employed, including at-line testing, lab testing, batch management, and product genealogy. At-line testing allowed line operators to streamline the testing procedures, and the IT solution provided the data needed to monitor and control net product contents. Batch management made it easier to handle variability in raw materials and ensure a more consistent product. Lab testing supported the quality assurance and quality control functions such as microbiological testing, attribute testing, sensory testing, and packaging testing. Product genealogy provided a complete record of every ingredient that went into every batch along with the ability to track and trace each finished product to a particular batch. Overall, the IT solutions were used to enhance manufacturing quality from the moment raw materials arrived to the moment the finished product appeared on the retail shelf.

Benefits:
The business process changes and the associated IT implementations brought dramatic and sustained results, and most importantly, these results supported the company’s strategic business goals. At-line testing improved efficiency, saved labor, and increased first-pass quality. Yields went up and rework went down. Quality improvements reduced hold times, and a decrease in product failures meant both material and labor savings. Strategic benefits included cost reductions from these changes, which expanded the company’s profit margins. Greater quality assurance strengthened brand equity while facilitating regulatory compliance, and increased efficiency enhanced the company’s ability to respond to customer demands and to bring new products to the market.