Increasing Capacity and Reducing Capex
Newton's programmes help consumer businesses increase capacity without increasing costs. Wherever the capacity of a process limits sales, there are substantial opportunities to increase efficiency and avoid the costs associated with the usual solutions of overtime, adding more shifts, outsourcing or capital expenditure.
We ensure production lines are crewed to optimum levels, and find innovative solutions to enable lines to operate for the maximum possible time throughout the working week. Once the basics are in place we optimise scheduling to ensure the correct running order and batch size, minimising changeovers and all associated losses. In addition we challenge existing procedures, line speeds, downtimes and causes of waste so that current capacity is truly maximised.
The key to successfully delivering an improvement project that will be truly sustainable, is knowledge transfer and training. We embed ourselves within our clients' team to work hand in hand, and we track the process with the same vigour as we track technical improvements on the line.
Our success is reflected in hard figures. Results we've achieved include:
- 70% increase in site capacity for a ready meals producer
- £2.5 million p.a. increase in profit from a 20% improvement in site capacity for a fresh food business
- 40% increase in caramel manufacture for a biscuit company, avoiding the need for outsourcing and saving £170,000 a year
Reducing capital expenditure by 20-100%
Newton's work focusses on improving operational and financial performance without the need for capital expenditure, so when we're asked to review and assess new capex plans, our approach is challenging, rigorous and typically results in considerably less expense than originally anticipated.
Our objective is to determine if the planned expenditure will deliver the required value and whether it is the best solution to reach the companies' goals.
We identify if expenditure can be prevented, delayed or reduced and provide an independent view of cost, risk, benefit and phasing. We save our clients from unnecessary expense by identifying where individual pieces of expenditure are not needed, and we frequently succeed in reducing larger capex plans by 20-100%.
Our work has resulted in:
- A 22% increase in efficiency for a beer canning plant, avoiding the need for a new line
- A private equity due diligence project on a bakery, reducing planned capex from £21.5 million to £10.5 million
- Saving £4 million of unnecessary expenditure for a medical product manufacturer