Continuous Improvement: Efficiency and productivity in the food industry

This case study explores how a major player in the food industry transformed its culture and operations by adopting Lean management, leading to greater efficiency, more consistent processes, and significant waste reduction across all its production sites. By adopting continuous improvement strategies and methodologies, the company increased productivity, optimized processes and resources, and strengthened its competitiveness in the domestic and international markets.

The company and project context

The company is a fourth-generation, family-owned food group specializing in producing and distributing a wide range of food products, including meats, sausages, pre-made meals, pizzas, and plant-based options. With operations in over 60 countries and a workforce of around 2,500 employees, it operates across 15 production centers located in various subsidiaries and branches in different countries.

The company’s purpose is to promote development through food, offering high-quality, innovative, and sustainable products that align with societal evolution. Its vision is to become a trusted reference, generating value based on its core principles: commitment, quality, food safety, innovation, proximity, and a passion for the work carried out.

The challenges faced

In 2017, the management initiated a strategic continuous improvement project to enhance operational efficiency and transform the company’s culture. This project was developed with a dedicated continuous improvement team consisting of Lean Management experts (Green and Black Belts) and supported by external partners.

The pilot project was implemented in the slicing facility and later scaled to other production units, with adaptations based on each plant’s level of operational maturity.

Figure 1 – Production line example

The implementation of the Lean management system brought challenges that required innovative solutions and strong involvement from the entire organization to achieve operational excellence:

Cultural transformation and team engagement

The paradigm shift required a significant effort to ensure the commitment of all teams, from production line employees to top management. Leadership involvement in the cultural transformation was crucial to overcoming resistance to change. This was achieved through training sessions, structured meetings, and the continuous engagement of the operational teams.

Standardization and model structuring

Creating a solid model was crucial for the project’s expansion. Controlling and standardizing processes and implementing Lean methodologies (5S for workplace organization, SMED for reducing changeover times, TPM to improve productivity, and Hoshin Kanri for defining sustainable growth objectives) were key to ensuring the sustainability of improvements.

Figure 2 – Example of factory organization using 5S

Management of indicators and data reliability

A robust KPI system was developed to reliably measure efficiency, waste, productivity, and quality. This system ensured data-driven decision-making and facilitated continuous monitoring of the impact of implemented actions.

Strategic approach and implemented actions

The project was developed in phases, ensuring the foundational elements were well-defined and laid out before expanding to all other company factories. Among the actions implemented, the following stand out:

1. Diagnosis and project structuring

The basis for a successful continuous improvement implementation began with a thorough diagnosis, ensuring that actions were focused on the main optimization opportunities, supported by reliable data, and properly trained teams. To make this possible, the following steps were taken:

• Initial analysis of the factories and definition of priorities.
• Data collection and creation of KPIs.
• Training the teams (management, continuous improvement, operational teams, and key company members).

This diagnosis enabled the strategic alignment of actions, ensuring the effective and sustainable implementation of continuous improvement.

2. Implementation of tools

The adoption and implementation of tools were crucial to ensuring the effectiveness of continuous improvement. The main tools implemented were:

• Visual management with boards and panels in all factories.
• Standardized structured meetings with the participation of all employees, totaling around 90 daily meetings across all factories, tailored to their needs and size.
• Development of improvement ideas, generating approximately 600 ideas, of which 400 were implemented, always considering employee feedback.
• Implementation of supervision routines and cross-training matrices to improve shift management and workforce adaptability.
• Standardization of processes with the creation of hundreds of standards.
• Conducting various workshops and hands-on training in methodologies such as 5S, TPM, SMED, and Hoshin Kanri, with more than 30 workshops held.

“We cannot implement a continuous improvement model without first having standardized and organized processes.” – Continuous improvement technician

3. Expansion of the improvement model

The company adopted a strategic approach to expand the continuous improvement model to all its factories to consolidate the operational and cultural transformation. The progressive implementation of Lean Manufacturing, combined with periodic system evaluations (internal and external) and annual plans for cost reduction and efficiency improvement, ensured the sustainability and lasting impact of the initiatives implemented.

4. Creation of the continuous improvement academy

The creation of a continuous improvement academy with training programs for employees has enabled:

• Structured training in Lean, SMED, TPM, 5S, and continuous improvement.
• A total of 13 training sessions were held, amounting to over 120 hours of training.
• Internal team empowerment to lead improvement projects.

“Our training academy offers basic and advanced training and workshops, including TPM, SMED, 5S, among others.” – Continuous improvement technician

Results achieved

Implementing the Lean management system delivered significant results across the production plants, solidifying the company as a benchmark in continuous improvement within the food sector. The impact of these improvements was reflected in the following results:

Operational impact

In terms of operational impact, it was possible to increase efficiency, reduce waste, and optimize processes, which led to significant improvements in plant performance, including:

• Eliminating a shift (night shift) at one of the slicing plants, resulting in a 25% increase in efficiency.
• Over 30% increase in efficiency at the minced meat plant.
• 3% to 4% reduction in waste at the slicing plants.
• A 2% to 3% increase in product yield.

“Implementing continuous improvement has allowed us two things: on the one hand, it improved productivity in our factories; on the other, it improved the relationship between people.” – Industrial corporate director

Financial impact

Continuous improvement efforts had a direct impact on EBITDA, generating €25 million through enhanced operational efficiency and optimized processes. The main contributions were:

• €3M at one of the slicing plants.
• €13M at one of the production units.
• €9M at the baked goods plant.

These gains reflect reduced waste, increased productivity, and the consolidation of Lean practices, strengthening the company’s competitiveness.

Specific actions and operational gains

Through the implementation of strategic initiatives and Lean methodologies, the company was able to optimize processes and generate significant impacts, including:

• Improved availability by 4 points in one of the slicing plants.
• A €700,000 gain from optimizing baked goods yields.
• Fast-track workshops, resulting in a 30% increase in productivity and €40,000 in gains.
• Implementation of TPM with gains exceeding €50,000.
• Hoshin workshops in the kitchen and one of the plants, with an overall impact of €80,000.
• Improved productivity with Value Stream Mapping (VSM) at the frozen food unit, resulting in a 40% increase in productivity and approximately €130,000 in gains.
• Reduction of lead time and process times at the minced meat plant by more than 10%.

The company’s continuous improvement journey demonstrated tangible and sustainable results, showcasing how a structured approach, focused on continuous process improvement and supported by Lean principles, can transform an organization’s operational and cultural efficiency.

“The continuous improvement approach focused on adding value to the company and eliminating waste.” – Operations director

The combination of process standardization, visual management, and team engagement resulted in significant operational and financial gains, positioning the company as a benchmark in the food industry.

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.