Issue:
The client was looking for an increased understanding of their waste, and seeking recommendations on Waste Reduction.
CFR Solution:
CFR undertook a comprehensive review of more than many different dockets, along with conducting staff interviews with a number of internal key stakeholders and operations staff who are subject matter experts.
This effort was intended to confirm the present assumptions on Waste, and was targeted to identify key decision points and primary sources of Materials Waste.
The findings indicated that Actual Waste was at 6.5%, compared to the Estimated Waste of 4.5%, used in cost accounting controls. In addition, 15 Key Decision points and 10 primary sources of Waste were identified from the analysis of data gathered.
CFR Analysis project cost was $15,000 for the initial engagement, however through our study, we identified over $300,000 waste savings opportunities.
Results:
CFR was able to identify and recommend 8 critical changes to current processes, which would reduce the Waste.
Total Savings Potential represented a minimum 5x return on investment in Year One (based on both project phase costs combined).