Transforming Efficiency in a Booming Thai Cracker Snack Company

Synopsis

A Thai healthy snack and dried fruit manufacturer experienced rapid growth, straining factory capacity and employee efficiency. As a consultant and operational turnaround coach, I was tasked with an 8-month team training, analyzing operations, enhancing employee understanding, and refining processes for long-term success.

Challenge

The company's rapid growth outpaced its operational infrastructure, leading to management inefficiencies:

• Warehouse issues: Lack of organization, expired products, damaged packaging, and limited space caused time wastage and product loss.

• Production inefficiency: Rushed production led to quality issues, labor shortages, and uncooperative behavior, resulting in customer complaints and machine problems.

• Employee knowledge gaps: Employees were unaware of their full responsibilities, multitasking led to a lack of focus, and there was a lack of understanding of business operations and problem-solving.

• Labor shortages: Delayed operations and a lack of cooperation stalled production.

• Machinery: Reliance on trial-and-error adjustments without proper maintenance plans and a lack of scheduled maintenance led to frequent breakdowns and inconsistencies.

• Customer risk: Reliance on a single customer for over 50% of total revenue posed a high risk if this customer were lost.

Methodology

• Diagnostics: Analyzed employee qualifications, work processes, warehouse layout, and production practices.

• Training:

  • Increased employee understanding of their roles and responsibilities.

  • Promoted teamwork and cross-functional collaboration.

  • Educated on best practices in warehouse management.

  • Cultivated problem-solving and long-term thinking skills.

  • Advised on reducing reliance on a single large customer.

• Process Improvement:

  • Standardized maintenance plans for machinery and equipment.

  • Optimized warehouse space utilization for efficient product placement and retrieval.

  • Established clear product placement protocols to reduce expiration and damage.

  • Defined workflows and priorities in overall business operations.

  • Reviewed and improved SAP account codes for better reporting and decision-making.

Project Deliverables

• Operational improvements: Consistent maintenance plans, optimized warehouse layout to reduce waste, and product categorization enabled cost reduction and savings.

• Employee empowerment: Training increased understanding of business processes, mitigating risks and improving teamwork.

• Improved data and reporting: Streamlined SAP account codes, enabling better decision-making from comprehensive reports.

Recommendations

• Warehouse management: Implement a barcode system for inventory tracking, set safety stock levels, and conduct regular audits.

• Production improvement: Enforce strict quality control measures and invest in automation.

• Employee training: Provide ongoing training on warehouse management, quality control, and business operations.

• Equipment maintenance: Strictly implement a preventive maintenance program and invest in equipment upgrades.

• Customer diversification: Develop new sales channels and co-develop products with customers.

Conclusion

This case study demonstrates the power of training, employee engagement, and data-driven decision-making in navigating the challenges of rapid growth for sustainable success.

• Rapid growth necessitates proactive operational improvements. Addressing space constraints, training employees to understand their roles and the bigger picture of cross-functional work, and maintaining equipment are crucial for sustainable growth.

• Data-driven insights are key to operational efficiency. Utilizing data to identify inefficiencies and tracking progress are essential for continuous improvement.

• Empowering employees fosters engagement. Providing training, clear communication, and a big-picture understanding motivates employees and improves overall efficiency.

• Reducing risks on a single customer or supplier can be detrimental. Building a diverse customer base and supply chain ensures resilience.

Want to empower your employees and increase efficiency? Imagine a business where every employee feels valued, every product is readily available, and your profits soar. It's all possible with the right approach. Contact me to help your business grow steadily.