Case study – manufacturing excellence
Reducing production cost through factory optimisation
8.5% reduction in material spend through reformulation and waste reduction
50% throughput increase in group’s largest automated line
We are experts in reducing material and labour cost
Our approach is data and software-led We worked with the client to build an IoT dashboard, LineVision, to measure line performance, flag problems and analyse causes. This showed that short but frequent line stops were adding up to big inefficiencies. We also improved line speed by optimising the Programmable Logic Controllers – in fact, we increased the overall capacity of the largest line by 50% through the optimisation of line, oven, recipes and robotics, and LineVision was rolled out across the manufacturing group.
We deliver what matters most
The private equity owner of a premium food producer had ambitious targets to improve EBITDA by 35%. We worked with the producer to identify cost savings across three factories, including labour and material cost reduction resulting in savings in excess of the target EBITDA improvement. This was based on improved line efficiency, labour plan optimisation, recipe cost development and waste reduction.
We saved another 3.5% of material spend by re- formulating recipes to meet consumer priority needs while reducing costs. This involved consumer needs analysis, recipe design and trial, blind tasting and customer negotiation. Waste was analysed, root causes identified, and solutions trialled, saving 5% of material spend.
“The partnership with Newton has been instrumental in supporting the business turnaround in the last two years.” CEO
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