Quality scrap reduction and OEE improvement at Novolex

The global food packaging industry plays a vital role in connecting food producers, retailers, and consumers through safe, reliable, and sustainable solutions. In recent years, the sector has faced growing pressure to balance operational efficiency, product quality, and environmental responsibility. Manufacturers are being challenged to reduce waste, improve traceability, and maintain the highest quality standards—all while meeting rising consumer expectations and cost constraints.

It is within this context that Novolex, formerly known as Pactiv Evergreen, has reinforced its commitment to operational excellence. With decades of experience producing packaging solutions for the food service industry, the company continues to evolve—integrating sustainability, quality, and lean principles into every aspect of its operations.

This collective effort culminated in Novolex winning the Quality Excellence Award at the Kaizen Awards North America, a recognition that reflects not only operational progress but also the organization’s unwavering commitment to excellence.

Leading the future of food packaging through Lean Thinking and sustainable growth

Novolex is a global leader in packaging solutions for the food service industry. The company produces a diverse range of disposable containers, trays, and materials used across the industry. Through its innovation-driven strategy and commitment to sustainability, Novolex continues to advance the way packaging supports safety, efficiency, and environmental responsibility across the value chain.

With decades of manufacturing expertise, Novolex has built a strong reputation for operational excellence and continuous improvement. Its culture is grounded in empowering people, optimizing processes, and driving results that benefit both customers and employees. Across its network of production sites, Novolex integrates Lean and Kaizen principles to enhance performance, eliminate waste, and foster collaboration at every level.

At one of its key facilities, the company launched the Quality Scrap Reduction and OEE Improvement initiative—part of its broader vision to strengthen product quality, improve process efficiency, and reinforce a culture of accountability and learning. This project represented another step in Novolex’s ongoing journey toward excellence, ensuring that operational improvements translate into long-term, sustainable value.

Unlocking new opportunities through continuous improvement

During the first quarter, the Novolex site identified an opportunity to further improve its operational consistency and product quality. While overall performance remained strong, the team observed an increase in non-conformances across both the Print and Thermoforming departments, signaling the need to fine-tune specific processes and reinforce alignment between areas.

Among the quality topics reviewed, rim defects were highlighted as a priority focus area. Addressing this issue offered an opportunity to improve first-pass yield, reduce material waste, and strengthen quality traceability across departments.

Rather than viewing this as a setback, the Mooresville team approached it as an opportunity to elevate performance and learning.

To guide the initiative, the team defined a clear set of measurable objectives:

• Year-End Target: $125K in savings.
• Q1 target savings: $13K.
• OEE improvement: from 64% to 72.5%.
• Enhanced quality control and traceability, through the development of Gemba Walk audits and the development of measuring systems centered on quality defect tracking.
• Empowerment and capability development of team members, fostering stronger problem-solving skills and collaboration on the shop floor.

Empowering people and processes

To achieve the defined objectives, Novolex implemented a structured and collaborative approach that combined data analysis, process optimization, and team empowerment. The initiative encouraged ownership at every level, enabling operators, engineers, and quality teams to work together toward common goals.

The project began with a Kaizen kickoff that combined Gemba observations, brainstorming, and structured data reviews. These sessions created a clear understanding of where process variations occurred and how they could be addressed sustainably.

Development of standard operating procedures (SOPs)

One of the first steps was the creation of new Standard Operating Procedures focused on non-conforming material control and product traceability. These SOPs provided a structured framework for identifying, isolating, and managing deviations, ensuring consistent communication between departments. By establishing a straightforward process for containment and follow-up, the site enhanced its ability to prevent recurrence and maintain product quality across production lines.

Increased frequency of quality checks

The frequency of in-process quality checks in the Thermoforming department was increased to allow early detection of variations. This proactive approach enabled operators to identify potential issues before they affected downstream operations. The additional checks also fostered stronger collaboration between production and quality teams, reinforcing the shared responsibility for achieving right-first-time production.

Troubleshooting guides for rim defects

A dedicated Troubleshooting Guide was developed for the assembly lines, providing operators with step-by-step instructions to identify, evaluate, and correct rim-related defects. This practical tool empowered the teams to make real-time decisions on the shop floor, reducing dependence on external support and minimizing production downtime.

Root cause analysis and continuous learning

To address recurring variations, cross-functional teams conducted Fishbone analyses and brainstorming sessions. These exercises allowed participants to explore technical, human, and process-related factors contributing to defects. By promoting open discussion and evidence-based analysis, Novolex created a stronger problem-solving culture that encouraged collaboration and learning across departments.

Figure 1 – Example of a fishbone analysis

Process optimization and flow adjustment

Another key action involved optimizing conveyor speed on line 121 to stabilize the infeed rate and improve synchronization with downstream processes. After confirming its success, the adjustment was replicated across other cup lines, resulting in more consistent flow and reduced cycle-time variability. These fine-tuning efforts demonstrated how small, data-backed process adjustments can deliver meaningful efficiency gains.

Enhanced quality reporting and data visualization

To strengthen decision-making, the team introduced an improved quality defect reporting system supported by visual dashboards. This system provided clearer visibility of defect trends and helped teams prioritize actions based on real-time data. The structured feedback loop between operators and quality leaders ensured that information flowed seamlessly and that progress was continuously monitored.

Operator training and empowerment

Finally, targeted training programs were delivered to enhance operators’ technical and analytical skills. Sessions focused on rim defect control, rimmer speed adjustment, and root cause identification. These training efforts went beyond technical competence, they helped operators take ownership of results, fostering pride and accountability. The focus on people development was one of the initiative’s most impactful outcomes.

When people lead change – the tangible and cultural outcomes of Kaizen

The quality scrap reduction and OEE improvement initiative delivered strong, measurable outcomes while reinforcing Novolex’s culture of collaboration and continuous learning. Beyond the numbers, the project demonstrated how disciplined problem-solving and team empowerment can generate lasting operational and cultural benefits.

Quantitative results:

The implementation of standardized procedures, improved quality control, and process optimization generated tangible improvements across the site’s key performance indicators:

• $153K in savings year-to-date, exceeding the original $125K annual target through effective defect reduction and process efficiency gains.
• OEE increased from 64% to 70.5%, reflecting higher asset utilization, reduced downtime, and stronger process reliability.
• Noticeable reduction in rim defects and non-conforming materials, supported by better traceability and early detection practices.

These results validated the site’s data-driven approach and highlighted how small improvements, when well executed, can compound into significant financial and operational gains.

Qualitative results:

Perhaps the most significant outcome of the project was the cultural transformation that took place across departments. The Kaizen initiative broke down silos and encouraged collaboration between teams that previously worked more independently, creating a stronger sense of shared purpose and mutual accountability.

Operators became more engaged in quality control and more confident in their ability to identify and address process variations directly at the source. The project also fostered open communication, where ideas and feedback flowed freely between shifts and departments.

“It’s been a very tough but also a great experience. It’s not just one person. With Kaizen, it takes a team—a group of individuals—making sure we’re honoring what we need and developing a change in culture. That’s what we’re striving to do and continuing to do.”
— Omari Williams, Plant CI Manager

Lasting impact – a foundation for the future

The project’s success reinforced Novolex’s commitment to operational excellence and continuous improvement. The lessons learned from this initiative are now being shared across other departments and sites, ensuring that best practices are replicated and further enhanced.

By combining technical precision with human engagement, Novolex has proven that sustainable performance comes from both data-driven systems and empowered people—a principle that continues to shape its journey toward excellence.

“The organization takes continuous improvement seriously—not as a slogan, but as a structured way of working that runs through every level of the company.” José Maria Cunha, Manager, Kaizen Institute