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Operational Turnaround at a Major Brewery

The client

Household name brewery
Focus on one modern facility
Significant efficiency gains required prior to acquisition by a third party buyout

The challenge

Deliver a cost effective Brewing and Packaging operation with unit costs consistent with the buy-out targets

No disruption to the production process during transition

Turn-round to be achieved within 9 months

The solution

A cost reduction programme was established around a strategy of reduced headcount, eliminating restrictive practices and outsourcing Distribution and Transport.

A clear communication strategy was evolved and the union advised of the "survival" plan. Demarcation payments were agreed and cross training/development plans put in place. In parallel, a redundancy strategy was formulated and managed to completion.

To tackle working practices, a Lean Manufacturing management structure was identified and communicated via "Champions" in each area of activity. In order to implement this, existing management skills and attitude were assessed and the appropriate training and recruitment programmes developed. Where necessary, management separation packages were negotiated and executed.

Finally, we negotiated a third party Warehousing and Distribution contract and managed the transfer of undertakings and staff, union involvement and disposal of assets.

Benefits at a glance

  • Overall costs reduced by 24%
  • Headcount reduced by 225
  • Overtime reduced by 10%
  • Individual earnings increased by 8%
  • Project completed in 8 months with no impact on customer service

 

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