As one of New Zealand’s leading contract beverage packers, Pure Bottling (PB) regularly has to deal with a number of manufacturing challenges. This is because contract packing involves a large number of combinations, with more than 20 different bottle sizes, multiple format options and a very diverse range of other materials. Consequently, a key challenge for PB, having so many variable manufacturing inputs, is to ensure that every single SKU is able to be run efficiently and profitably.
"We didn’t know what was causing our losses, we were flying blind”
Craig Ayres, General Manager
Each of the SKU variables has the potential to add cost and risk to running profitably. In practical terms, if a customer were to supply their own labels, and these were of poor quality, the labeller could jam. Unfamiliar trays may result in case packer issues. Or, a new type of cap may result in closure problems, and so on. With every SKU performing differently, this raised the following questions for PB:
• How can we ensure we are making a profit on all our SKUs?
• Are we pricing each SKU accurately?
• Where do we focus our resources to improve?
PB General Manager, Craig Ayres, realized he was “flying blind” and initially tried implementing a manual paper-based system to help measure line performance and identify their problems, however, this did not work as expected and proved to be time consuming, inefficient and inaccurate. Craig ultimately decided to explore options for a technology solution, to give PB insights into their biggest opportunities.
“We needed to understand where we were having difficulties and where
we could improve.”
Craig Ayres, General Manager
With OFS, PB has the ability to automatically see which SKUs are performing poorly. PB combines this information with financial data creating a rich dashboard that showcases in real-time the true cost of production performance. Analyzing this, Craig was surprised to discover the number of their SKUs that were running at a loss, prompting PB to re-price them accordingly – ensuring they were making profit moving forward. Such analysis is now part of regular operational activities, helping the team dig deeper to continually identify future profit and improvement opportunities.
Pure Bottling downtime cost break down reports (note: graphs shown are using an example dataset)
Visibility on Performance
OFS is a single source of truth for PB – providing easily accessible web-based reports and live dashboards.
Integrating OFS and financial data, PB is now able to see the true cost of production inefficiencies and invest CAPEX accordingly.
Root Downtime Analysis
With access to detailed reports, PB can now easily pinpoint the root cause of downtime and identify where areas of opportunity are.
PB can now justify CAPEX backed with accurate data form OFS and ensure their investments make a real difference.
PB is now driving a culture of change, empowering their team to practice lean methodology, by harnessing the ability to make data-driven decisions that drives continuous improvement. PB are now expanding this solution across their entire operation and continuing on an exceptional operational excellence journey.