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Technology Watch Knowledge Base |
Internal benchmarking leverages the improvement process for FOODMASTER |
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PROBLEM STATEMENT |
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FOODMASTER S.A. is a small local company activated in the area of meat processing and poultry standardization. It produces different products based primarily on chicken. The company is still developing and expanding and wants to gain a bigger share in the local market. It was observed that even though all the products use chicken as the base, there were large variations in the performance of the different products. As a first step of improvement the company wanted to achieve optimum production performance within the company for all products. Therefore an act of reviewing and assessing the current environment was necessary. Moreover the introduction of IT services should be provided to support and enable business activities. A roadmap for performance improvement was needed. |
IMPROVEMENT APPROACH |
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First of all the client had to fill the BL1 questionnaire (BL1 questioner was translated into Greek by LCP –LAR). The client was also supported when the data was collected. The production director and the FOODMASTER’s accountant were involved in the collection of the data in close collaboration with people form LCP and TRC. Apart from the quantified gathered information, a general assessment that broadly viewed all the client’s functions was conducted. The analysis revealed the need to re-establish and change the supplier chain since unacceptable delays were introduced in the production for specific products. Furthermore, analysis of the shop floor revealed that a rearrangement of the production line might lead to further improvement. The proposal for the rearrangement of the production line was taken into consideration but the company hasn’t decided yet to implement it. The processing of the data pointed out that a further adoption of IT methods and software was necessary to leverage the development of the enterprise. |
More specifically, the need for purchasing ERP software was considered of paramount importance in order to improve performance and competitiveness and operate in a level higher than the average small Greek company. |
BENEFITS |
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The involvement of the production director in the benchmarking process gave him the opportunity to realise the usefulness of the procedure and convinced him that there was room for improvements. We must not forget that scepticism is the main attitude of every small company in Greece towards innovation. The rearrangement of the supplier chain has given the opportunity to increase production performance and achieve a performance with minor fluctuations among the different products. Even if the rearrangement of the production line is not being adopted the benefits from the rearrangement of the supplier chain has already started to show that with small strategic investments improvement can be achieved. This convinced the directors of the company that the purchase of an ERP software was not a luxury but a indispensable need in order to gain better control over the whole process. As a result the company is planning to buy an ERP system in the beginning of the new fiscal year. The overall improvement will lead to savings up to 50-100 Keuro in the first year. However, |
the major improvements are still to come since the company is willing to pass from the level of being a traditional Greek enterprise to the next level of becoming a world class enterprise |
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