Maximizing OEE in Food Manufacturing: A KAIZEN™ Success Story

The Importance of OEE in the Food Industry

Operational Equipment Effectiveness (OEE) is a critical KPI in the food industry, where high-capacity, capital-intensive equipment must operate efficiently to minimize waste, reduce downtime, and optimize production output. Since food manufacturing involves continuous processing, even minor inefficiencies can lead to significant production losses and increased costs.

For a leading food manufacturing company in Europe, improving OEE was essential to reduce equipment downtime, improve changeover efficiency, and enhance production flow. A well-optimized OEE strategy would not only increase capacity utilization but also reduce operational costs and improve service levels.

The Challenge of OEE Variability in Food Manufacturing

Despite its strong market position, the company struggled with OEE variability due to several operational inefficiencies:

• Low OEE in key production lines due to frequent stoppages and machine inefficiencies.
• High labor hours per ton, increasing operational costs.
• Extended lead times in the supply chain, leading to excessive inventory buildup.
• Inefficient changeovers, causing high downtime and reducing production flexibility.
• Logistics inefficiencies affecting warehouse and internal material movement.

To address these issues, the company partnered with KAIZEN™ experts, applying a structured Lean Manufacturing and Total Productive Maintenance (TPM) approach to drive measurable improvements.

KAIZEN™ Approach: Optimizing Performance Across Manufacturing Operations

The team implemented several KAIZEN™ principles to address and reduce OEE Variability:

1. Implementing KAIZEN™ Mission Control for Real-Time Performance Tracking
   – Installed visual management systems at key process points to monitor OEE.
   – Daily KPI tracking introduced to analyze production losses and bottlenecks.
2. Kobetsu Kaizen: Addressing Micro Stoppages & Downtime
   – Standardized lubrication and predictive maintenance strategies implemented.
   – Root cause analysis conducted for recurring equipment failures.
3. SMED for Faster Changeovers
   – Training programs introduced for operators to improve setup efficiency.
   – Process sequencing optimized to reduce unnecessary downtime.
4. Warehouse & Logistics Optimization
   – Redesigned warehouse layout for more efficient material storage and movement.
   – Introduced Mizusumashi for internal material logistics freeing up production’s time from material movement task.
   – Standardized truck scheduling to balance outbound logistics.

Tangible Benefits Achieved

Following structured KAIZEN™ interventions, the company achieved significant operational improvements, resulting in substantial cost savings and efficiency gains:

• Labor efficiency improved by 18%, reducing labor hours per ton and leading to annual savings of USD 100K.
• OEE on key production lines increased by 36%, generating an additional USD 40K in production output per year.
• Changeover times were reduced by 20%, minimizing downtime and improving overall production flexibility.
• Days of Sales Inventory for a key product was reduced from 24.6 days to 20 days (-19%), optimizing inventory flow and lowering storage costs.
• On-time deliveries for a key product improved from 90% to 95%, ensuring better service levels and improved customer satisfaction.

These improvements positioned the company for long-term operational excellence and sustainable growth in the competitive food manufacturing industry.